Parrish Company Parrish Company uses activity-based costing. The company produces two products: IPods and MP3 players. The annual production and sales volume of IPods is 8,000 units and of MP3 players is 6,000 units. There are three activity cost pools with the following expected activities and estimated total costs:
Refer to Parrish Company. Using ABC, the cost per unit of MP3 players is approximately:
A) $ 2.40
B) $ 3.90
C) $12.00
D) $15.90

Question

Parrish Company Parrish Company uses activity-based costing. The company produces two products: IPods and MP3 players. The annual production and sales volume of IPods is 8,000 units and of MP3 players is 6,000 units. There are three activity cost pools with the following expected activities and estimated total costs:
 Refer to Parrish Company. Using ABC, the cost per unit of MP3 players is approximately:
A) $ 2.40 
B) $ 3.90 
C) $12.00 
D) $15.90

Quizplus · Accepted Answer

The Answer of Parrish Company Parrish Company uses activity-based costing. The company produces two products: IPods and MP3 players. The annual production and sales volume of IPods is 8,000 units and of MP3 players is 6,000 units. There are three activity cost pools with the following expected activities and estimated total costs:
 Refer to Parrish Company. Using ABC, the cost per unit of MP3 players is approximately:
A) $ 2.40 
B) $ 3.90 
C) $12.00 
D) $15.90

Parrish Company Parrish Company Uses Activity-Based Costing