RS Company Manufactures and Distributes Two Products,R and S

question 83

Multiple Choice

RS Company manufactures and distributes two products,R and S.Overhead costs are currently allocated using the number of units produced as the allocation base.The controller has recommended changing to an activity-based costing (ABC) system.She has collected the following information: What is the total overhead per unit allocated to Product S using activity-based costing (ABC) ?

• A)$2.60.
• B)$2.27.
• C)$2.00.
• D)$1.83.

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