Question

Abbe Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 2,200 units and of Product B is 1,250 units. There are three activity cost pools, with estimated costs and expected activity as follows: Activity Cost Pools Estimated Overhead Cost Expected Activity Product A Product B Total Activity 1 $ 66,033 1,700 1,600 3,300 Activity 2 $ 88,929 2,700 1,400 4,100 Activity 3 $ 102,486 880 860 1,740 The overhead cost per unit of Product B is closest to: (Round your intermediate calculations to 2 decimal places.)

Abbe Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 2.200 units and of Product B is 1,250 units. There are three activity cost pools, with estimated costs and expected activity as follows: Expected Activity Activity Cost Pools Activity i Activity 2 Activity 3 Estimated Overhead Cost $ 66,033 $ 88,929 $ 102,486 Product A Product B 1,700 1,600 2,700 1,400 880 860 Total 3,300 4,100 1,740 The overhead cost per unit of Product B is closest to: (Round your intermediate calculations to 2 decimal places.) Multiple Choice $34.25 O $27.57 $90.43 $64.96

Answer 1

Aus Calculation of overhead Cost per Guit g roduct B ² 1 Activities L Estimated overhead Cost $66,033 Total L Activity Expected. Aclivity L_ Bale (a+b) 3300 $20.01 Activity 1 Activity 2 $ 88,929 4100 $21.69 Activity 3 $102,486 1740 $58.9 1400 5 30,366 $50,654 T landuct B | Activities and Activity pactes Expected I Amount Activity I | Activity ($20.01) 1600 $32016 | Activity 2 ($11.69) | Activity 3 ($58.9) 860 Total overhead Costs assigned (a) $ 113,036 Nymber of units produced (b) 125o Loverhead Cost Per chit (a+b) 90.42288 So, the overhead Cost per Unit of product & is closet to & 90.43. So the corect Answn is option C.