A Company Has Two Products: X and Y

question 68

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.
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.

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Definitions:

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account columns to check for accuracy.

List of Accounts

A comprehensive list that includes all of a company's accounts and account numbers used within its accounting system.

Account Balances

The amount of money in a financial repository, such as a checking account, at any given moment.

Reference Column

A column in ledgers or journals used to cross-reference or track specific transactions.