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

question 26

Multiple Choice

Bridget Company uses activity-based costing. The company has two products: A andB. The annual production and sales of Product A is 2,000 units and of Product B is 3,000 units. There are three activity cost pools, with estimated total cost and expected activity as follows. $\begin{array}{lrr}&\text { Estimated}& \text {Expected Activity }\\\text { Activity CostPool }&\text { Cost }& \text {ProductA}&\text { Product B}&\text { Total }\\ \text {Activity 1 } &£ 9,000&400 &350 &760\\\\ \text { Activity 2. } &£ 12,000& 100 & 400 &500\\\\ \text { Activity 3 } &£ 84,000& 400 &1,200 & 1,600\\\end{array}$

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

• A)£6.00.
• B)£9.60.
• C)£8.63.
• D)£13.80.

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