Samson Inc How Much Was the Unit Cost Per Service?
A) $1

question 129

Multiple Choice

Samson Inc. reported the following information for the year 2015: $$\begin{array} { | l | r | } \hline \text { Service Revenue } & \$ 40,000 \\\hline \text { Operating Expenses } & \$ 23,625 \\\hline \text { Net Income } & \$ 16,375 \\\hline \text { Number of Services Provided for the Year } & 10,500 \\\hline\end{array}$$ How much was the unit cost per service?

• A) $1.56
• B) $3.20
• C) $2.25
• D) $3.81

---

Definitions:

Activity Driver

An activity driver is a factor in activity-based costing that influences the costs of an activity, helping allocate costs more accurately to products or services.

Activity-based Costing

An accounting method that assigns costs to products or services based on the activities they require, promoting more accurate cost management.

Non-volume Driven

Pertains to costs that do not change with the level of production or service volume.

Product Costing System

An accounting methodology used to ascertain the total production cost of a product, by adding together the costs of direct materials, direct labor, and manufacturing overheads.