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A Company Has Two Products: A1 and B2

question 156

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A company has two products: A1 and B2.It uses activity-based costing and has prepared the following analysis showing budgeted cost and activity for each of its three activity cost pools: A company has two products: A1 and B2.It uses activity-based costing and has prepared the following analysis showing budgeted cost and activity for each of its three activity cost pools:   Annual production and sales level of Product A1 is 8,480 units,and the annual production and sales level of Product B2 is 22,310 units. -What is the approximate overhead cost per unit of Product B2 under activity-based costing? A) $8.00 B) $9.00 C) $10.00 D) $12.00 E) $4.00 Annual production and sales level of Product A1 is 8,480 units,and the annual production and sales level of Product B2 is 22,310 units.
-What is the approximate overhead cost per unit of Product B2 under activity-based costing?


Definitions:

Premium on Bonds Payable

The amount by which the bond's selling price exceeds its face value.

Carrying Value

The book value of assets and liabilities on a company's balance sheet, reflecting the historical cost of assets minus accumulated depreciation.

Convertible Bonds

Bonds that can be converted into a predetermined number of the issuing company's shares at certain times during its life, usually at the discretion of the bondholder.

Carrying Value

The book value of an asset or liability on a company's balance sheet, calculated as the original cost minus accumulated depreciation or amortization.

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