The Homer Corporation produces two products, and reports the following production and cost information for the most recent accounting period.

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Using activity-based costing for assigning overhead costs, the total product cost per unit for Product B is:
A) $78.85 per unit
B) $12.75 per unit
C) $75.60 per unit
D) $13.40 per unit
E) $14.60 per unit

Question

The Homer Corporation produces two products, and reports the following production and cost information for the most recent accounting period.

- 
Using activity-based costing for assigning overhead costs, the total product cost per unit for Product B is:
A) $78.85 per unit 
B) $12.75 per unit 
C) $75.60 per unit 
D) $13.40 per unit 
E) $14.60 per unit

Quizplus · Accepted Answer

Activity-based costing assigns overhead costs based on activities that drive costs, leading to a more accurate product cost. The correct total product cost per unit for Product B is $78.85.

The Homer Corporation Produces Two Products, and Reports the Following