What is the cost per unit of super under abc costing

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Reference no: EM132627129

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)?

Reference no: EM132627129

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