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Modern Accessories has two products: Economy and Super. Production and sales for the current year is 8000 for Economy and 2000 for Super. There are three activity cost pools with the following estimated total cost and expected activity :
Estimated Expected Activity
Cost Economy Super Total
Activity 1 $36,000 2000 1000 3000
Activity 2 $12,000 750 250 1000
Activity 3 $16,000 400 100 500
Question a. What is the activity rate under ABC system for Activity 1?
Question b. What is the cost per unit of Super under ABC costing (round to the nearest dollar)?
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