Calculate overhead cost per unit of product a


Accola Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 1,800 units and of Product B is 1,050 units. There are three activity cost pools, with estimated costs and expected activity as follows:

  Activities Estimated Overhead Cost Expected Activity
Product A Product B Total
  Activity 1 $46,775 1,300 1,200 2,500
  Activity 2 $68,277 2,300 1,000 3,300
  Activity 3 $82,502    720 700

  1,420


The overhead cost per unit of Product A is closest to?

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Accounting Basics: Calculate overhead cost per unit of product a
Reference No:- TGS0676385

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