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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Annika Company uses activity-based costing. The company has two products: A and B. 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:
Expected Activity
Activity Cost Pool Estimated Costs Product A Product B Total
Activity 1 $18,000 700 300 1,000Activity 2$24,000500 100 600Activity 3 $60,0008004001,200
Thecost per unit of Product A under activty-based costing is closest to:
Answer
| Â | a. | $20.40 |
| Â | b. | $18.15 |
| Â | c. | $17.00 |
| Â | d. | $10.00 |
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