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?
Definitions:
Budgeted Sales
Projected or estimated sales for a future period, usually based on past sales data, market analysis, and growth projections.
Master Budget
A comprehensive financial plan for a company's future operations, including multiple subsidiary budgets.
Selling Expense
Expenses directly associated with the sale of a product or service, including advertising, sales commissions, and promotional materials.
Credit Sales
Sales made on credit, where the customer agrees to pay at a future date.
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