The overhead applied to each unit of Product W2 under activity-based costing is closest to:

A) $2,286.58 per unit
B) $1,126.79 per unit
C) $995.09 per unit
D) $1,825.00 per unit

Question

The overhead applied to each unit of Product W2 under activity-based costing is closest to:A) $2,286.58 per unitB) $1,126.79 per unitC) $995.09 per unitD) $1,825.00 per unit

Chris McNatt · Accepted Answer

Final Answer : A, Explanation :  Computation of activity rates:   Computation of the overhead cost per unit under activity-based costing.   Reference: CH04-Ref9Arthur Company has two products: S and D.The company uses activity-based costing and has prepared the following analysis showing the estimated total cost and expected activity for each of its three activity cost pools:   The annual production and sales of Product S is 4,547 units.The annual production and sales of Product D is 7,913.

The overhead applied to each unit of Product W2 under activity-based costing is closest to:

A) $2,286.58 per unit
B) $1,126.79 per unit
C) $995.09 per unit
D) $1,825.00 per unit

Definitions

Learning Objectives

Learning Objectives

Related questions