Alexander Inc. uses activity-based costing. The company produces two products: Snaps and Pops. The expected annual production of Snaps is 1,500 units, while the expected annual production of Pops is 2,200 units. There are three activity cost pools: Assembly, Testing, and Packing. The estimated costs and activities for each of these three activity pools follows: The overhead cost per unit of Pops would be closest to
A)$15.30.
B)$5.32.
C)$7.80.
D)$31.00.

Question

Alexander Inc. uses activity-based costing. The company produces two products: Snaps and Pops. The expected annual production of Snaps is 1,500 units, while the expected annual production of Pops is 2,200 units. There are three activity cost pools: Assembly, Testing, and Packing. The estimated costs and activities for each of these three activity pools follows:  The overhead cost per unit of Pops would be closest to
A)$15.30. 
B)$5.32. 
C)$7.80. 
D)$31.00.

Quizplus · Accepted Answer

The Answer of Alexander Inc. uses activity-based costing. The company produces two products: Snaps and Pops. The expected annual production of Snaps is 1,500 units, while the expected annual production of Pops is 2,200 units. There are three activity cost pools: Assembly, Testing, and Packing. The estimated costs and activities for each of these three activity pools follows:  The overhead cost per unit of Pops would be closest to
A)$15.30. 
B)$5.32. 
C)$7.80. 
D)$31.00.