Jasmine Company Uses Activity-Based Costing The Cost Per Unit of Product a Under Activity-Based Costing

question 54

Multiple Choice

Jasmine Company uses activity-based costing. The company has two products: A andB. The annual production and sales of Product A is 10,000 units and of Product B is 4,000 units. There are three activity cost pools, with estimated total cost and expected activity as follows: $\begin{array}{lrr}&\text { Estimated}& \text {Expected Activity }\\\text { Activity CostPool }&\text { Cost }& \text {ProductA}&\text { Product B}&\text { Total }\\ \text {Activity 1 } &£ 25,000&150 &100 &250\\\\ \text { Activity 2. } &£ 65,000& 800 & 200 &1,000\\\\ \text { Activity 3 } &£ 90,000& 1,000 &2,000 &3,000\\\end{array}$


The cost per unit of Product A under activity-based costing is closest to

• A)£6.00.
• B)£9.70.
• C)£1.50.
• D)£3.00.

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Definitions:

Organizational Setting

The environmental and cultural context in which a company or group operates, including its policies, values, and structure.

Team Execution

The ability of a team to effectively implement plans and achieve its objectives.

Clear Performance Standards

Explicitly defined benchmarks for measuring performance, providing a basis for feedback and evaluation.

Team Size

Refers to the number of members that compose a team, which can affect the team's dynamics, communication, and effectiveness.