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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
Multiple Choice Ο Ο 37 Ο $240 Ο Ο S10 26 Ο Ο $1.44 Ο Ο 51.52
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Answer #1

Answer) 2.40

Explanations:

Activity 1 allocated to Product B = 103000 x 4400 / 9000 = 50356

Activity 2 allocated to Product B = 78000 x 7100 / 13200 = 41955

Activity 3 allocated to Product B = 125000 x 6850 / 10950 = 78196

Total Overhead cost allocated to Product B = 170507

Overhead per unit of Product B = 170507 / 71150 = 2.40

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