Respuesta :
The approximate overhead cost per unit of Product A1 under activity-based costing is $4.46
How to explain the cost?
Allocation overhead to product line under A B C costing = Total overhead cost of specific product line/total number of products sold.
Activity 1 allocated to Product: $56,000 × 5,600/7,600 = $41,263
Activity 2 allocated to Product: $71,000 × 5,560/8,600 = $45,902
Activity 3 allocated to Product: $96,000 × 1,600/9,600 = $16,000
Total overhead allocated to Product = $103,165
Overhead per unit of Product: $103,165/23,110 = $4.46
The complete question is:
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:
Activity Cost Pool Budgeted Cost Product A1 Product B2
Activity 1 $60,000 2,400 6,000
Activity 2 $75,000 3,440 5,960
Activity 3 $104,000 8,400 2,000
Annual production and sales level of Product A1 is 9,080 units, and the annual production and sales level of Product B2 is 22,910 units. What is the approximate overhead cost per unit of Product A1 under activity-based costing
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