Estimated costs and expected activity

Assignment Help Database Management System

Reference no: EM13646260

Use the following to answer questions:

Abel Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 200 units and of Product B is 400 units. There are three activity cost pools, with estimated costs and expected activity as follows:

		Expected Activity
Activity Cost Pool	Estimated Cost	Product A	Product B	Total
Activity 1...............	$16,660	600	100	700
Activity 2...............	$18,450	1,100	700	1,800
Activity 3...............	$9,731	60	160	220

1. The activity rate for Activity 2 is closest to:

A) $24.91

B) $26.36

C) $16.77

D) $10.25

2. The cost per unit of Product B is closest to:

A) $41.58

B) $81.53

C) $74.73

D) $17.69

Reference no: EM13646260

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