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: The cost per unit of Product B is closest to:
A) $41.58
B) $81.53
C) $74.73
D) $17.69

Question

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:  The cost per unit of Product B is closest to:
A) $41.58 
B) $81.53 
C) $74.73 
D) $17.69

Quizplus · Accepted Answer

The Answer of 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:  The cost per unit of Product B is closest to:
A) $41.58 
B) $81.53 
C) $74.73 
D) $17.69

Abel Corporation Uses Activity-Based Costing