A Company Has Two Products: X and Y Annual Production and Sales Level of Product X Is 161,100

question 52

Essay

A company has two products: X and Y.It uses activity-based costing and has prepared the following analysis showing budgeted cost and activity for each of its three activity cost pools.
$$\begin{array} {r}{ \text { Budgeted Activity } } \quad\quad\quad\\\begin{array} { | l | l | r | r | } \hline \begin{array} { l } \text { Activity Cost } \\\text { Pool }\end{array} &{ \begin{array} { l } \text { Budgeted } \\\text { Cost }\end{array} } & \text { Product } \mathbf { X } & { \text { Product Y } } \\\hline \text { Activity 1 } & \$ 3,600 & 25,200 & 46,800 \\\hline \text { Activity 2 } & \$ 4,800 & 36,000 & 44,000 \\\hline \text { Activity 3 } & \$ 6,300 & 43,200 & 46,800 \\\hline\end{array}\end{array}$$ Annual production and sales level of Product X is 161,100 units, and the annual production and sales level of Product Y is 275,200 units.
a.Compute the approximate overhead cost per unit of Product X under activity-based costing.
b.Compute the approximate overhead cost per unit of Product Y under activity-based costing.

---

Definitions:

President

The elected head of a republican state or the executive leader of an organization, company, club, or other governing body.

New York Fed

A key component of the Federal Reserve System, responsible for regulating and implementing monetary policy in the Federal Reserve District of New York.

FOMC

The Federal Open Market Committee, which is responsible for setting monetary policy in the United States, including interest rates and money supply targets.

Federal Reserve Board Governors

Members of the board that oversees the Federal Reserve System, responsible for setting monetary policy, including interest rates, in the United States.