A company has two products: A and B. It uses activity-based costing and
has prepared the following analysis showing budgeted cost and activity
for each of its three activity cost pools.
Annual
production and sales level of Product A is 34,300 units, and the annual
production and sales level of Product B is 69,550 units. What is the
approximate overhead cost per unit of Product A under activity-based
costing?
$2.33
$10.28
$3.00
$2.00
$15.00
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