A Company Has Two Products: a and B

question 151

Multiple Choice

A company has two products: A and B.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 A is 34,300 units,and the annual production and sales level of Product B is 69,550 units.What is the approximate overhead cost per unit of Product B under activity-based costing?

• A) $3.00
• B) $2.00
• C) $10.28
• D) $15.00
• E) $2.33

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