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a company has two products: a and b. it uses activity-based costing and has prepared the following analysis showing budgeted cost and activity for each of its three activities: activity budgeted cost activity cost driver budgeted activity product a product b activity 1 $ 90,000 square feet 3,300 3,100 activity 2 $ 65,000 units produced 4,800 5,800 activity 3 $ 99,000 setups 2,800 5,550 annual production and sales level of product a is 34,600 units, and the annual production and sales level of product b is 69,850 units. what is the approximate overhead cost per unit of product b under activity-based costing? multiple choice $3.15 $2.08 $10.29 $14.06 $2.14



Answer :

varshamittal029

Overhead cost per unit is $2.08

Activity Cost            Budget       A             B            A+B      cost*     OH**           Pool                                                                                          

Activity 1                 90000 3300 3100 6400       14 43400

Activity 2                 65000 4800 5800 10600     6.13 35554

Activity 3            99000 2800 5550 8350       11.8 65802

Total                                     14450      25350             144756

Production                                              69850

Overhead unit cost                                      2.08

here cost* is cost per unit = A+B/Budget

OH**= total Overheads

Overhead unit cost= Total Overhead cost of B/ units sold

What is Activity based costing?

Activity-based costing is a costing method that identifies activities in an organization and allocates the cost of each activity to each product and service depending on how much of each is actually consumed.

To know more about Activity based costing refer

https://brainly.com/question/6654166

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