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Category > Business & Finance Posted 27 May 2017 My Price 12.00

Matt Company uses activity-based costing.

Matt Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 8,000 units and of Product B is 7,500 units. There are three activity cost pools, with total cost and total activity as follows:
   

Total Activity
  Activity Cost Pool Total Cost Product A Product B Total
  Activity 1 $27,950   150     500     650    
  Activity 2 $39,856   830     230     1,060    
  Activity 3 $152,874   810     3,660     4,470    

The activity-based costing cost per unit of Product A is closest to: (Round your intermediate calculations to 2 decimal places.)

$7.07 per units

$6.27 per units

$14.16 per units

$8.17 per units

 

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Homework Helper
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Status NEW Posted 27 May 2017 07:05 PM My Price 12.00

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