Sparks Company produces and distributes two types of garden sculptures, Plain and Fancy. Budgeted cost and activity for each of its three activity cost pools are shown below. The company plans to produce and sell 64,000 plain units and 49,150 fancy units.

(a.) Compute the approximate overhead cost per unit of Plain under activity-based costing.
(b.) Compute the approximate overhead cost per unit of Fancy under activity-based costing.

Question

Sparks Company produces and distributes two types of garden sculptures, Plain and Fancy. Budgeted cost and activity for each of its three activity cost pools are shown below. The company plans to produce and sell 64,000 plain units and 49,150 fancy units.

(a.) Compute the approximate overhead cost per unit of Plain under activity-based costing.
(b.) Compute the approximate overhead cost per unit of Fancy under activity-based costing.

Quizplus · Accepted Answer

The Answer of Sparks Company produces and distributes two types of garden sculptures, Plain and Fancy. Budgeted cost and activity for each of its three activity cost pools are shown below. The company plans to produce and sell 64,000 plain units and 49,150 fancy units.

(a.) Compute the approximate overhead cost per unit of Plain under activity-based costing.
(b.) Compute the approximate overhead cost per unit of Fancy under activity-based costing.

Sparks Company Produces and Distributes Two Types of Garden Sculptures