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A company has two products: A1 and B2. It uses activity-based costing and has prepared the...

A company has two products: A1 and B2. It uses activity-based costing and has prepared the following analysis showing budgeted cost and activity for each of its three activity cost pools:

Budgeted Activity
Activity Cost Pool Budgeted Cost Product A1 Product B2
Activity 1 $ 61,000 2,500 6,100
Activity 2 $ 76,000 3,540 6,060
Activity 3 $ 106,000 8,500 2,100


Annual production and sales level of Product A1 is 9,780 units, and the annual production and sales level of Product B2 is 23,610 units. What is the approximate overhead cost per unit of Product B2 under activity-based costing?

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7.92 Determine the Activity rate for each activty pool Activity rate= Cost pool/ Total Cost pool total Activty Activity Activ

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