Abel Corporation uses activity-based costing. The company makes two products: Product A and Product 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 total cost and activity as follows:
Total Activity
Activity Cost Pools Total 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
The cost per unit of Product B is closest to:
A) $41.58
B) $81.53
C) $74.73
D) $17.69
Answers: 3
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Abel Corporation uses activity-based costing. The company makes two products: Product A and Product...
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