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

question 12

Multiple Choice

Annika Company uses activity-based costing. The company has two products: A andB. The annual production and sales of Product A is 4,000 units and of Product B is 1,000 units. There are three activity cost pools, with estimated total cost and expected activity as follows: $\begin{array}{lrr}&\text { Estimated}&& \text { Expected Activity }\\\text { Activity Cost Pool }&\text { cost }&\text { ProductA}&\text { Product B}&\text { Total }\\ \text {Activity 1. } &£ 18,000& 700 & 300 &1,100\\ \text { Activity 2. } &£ 24,000 & 500 & 100 &600\\ \text { Activity 3.} &£ 60,000 &800 &400&1,200\\\end{array}$


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

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Definitions:

Extinction

In the context of behavioral psychology, it refers to the gradual reduction and eventual elimination of a conditioned response.

Not Effective

Lacks the ability to produce a desired or intended result.

Reasons

The explanations or justifications for an action or belief, often examined in the context of decision-making and problem-solving.

Omission Training

A learning process in which a response leads to the removal of an expected reward or positive outcome, thereby decreasing the likelihood of that response in the future.