A Company Has Two Products: A1 and B2 Annual Production and Sales Level of Product A1 Is 8,480

question 5

Multiple Choice

A company has two products: A1 and B2. It uses activity-based costing and has prepared the following analysis showing budgeted cost and activity for each of its three activity cost pools: $$\begin{array} { l c c c } & & { \text { Budgeted Activity } } \\\text { Activity Cost Pool } & \text { Budgeted Cost } & \text { Product Al } & \text { Product B2 } \\\text { Activity 1 } & \$ 48,000 & 1,200 & 4,800 \\\text { Activity 2 } & \$ 63,000 & 2,240 & 4,760 \\\text { Activity 3 } & \$ 80,000 & 7,200 & 800\end{array}$$ Annual production and sales level of Product A1 is 8,480 units, and the annual production and sales level of Product B2 is 22,310 units. What is the approximate overhead cost per unit of Product B2 under activity-based costing?

• A) $8.00
• B) $9.00
• C) $10.00
• D) $12.00
• E) $4.00

---

Definitions:

Client-centered Therapy

A form of psychotherapy developed by Carl Rogers that emphasizes an empathetic, accepting, and genuine environment for clients to facilitate personal growth.

Nonjudgmental Setting

A supportive environment where individuals feel safe to express themselves without fear of criticism or judgment.

Rational-emotive Behavior Therapy

A form of psychotherapy that helps individuals identify self-defeating thoughts and feelings, challenge the rationality of those feelings, and replace them with healthier, more productive beliefs.

Albert Ellis

An American psychologist known for developing Rational Emotive Behavior Therapy (REBT), a form of psychotherapy aimed at resolving emotional and behavioral problems.