Bar-BQs-Are-Us has two products: A and B. The annual production level of Product A is 9,094 units. The annual production level of Product B is 15,826. The company uses activity-based costing and has prepared the following analysis showing the estimated total cost and expected number of activities for each of its three activity cost pools.
Overhead cost |
Expected number of activities |
||
Product A |
Product B |
||
Activity #1 |
$29,200 |
$1000 |
$500 |
Activity #2 |
$40,000 |
$200 |
$800 |
Activity #3 |
$180,000 |
$600 |
$5400 |
What is the activity rate for Activity #3?
For the products described above, find the overhead cost per unit for Product A.
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