The . Forrer Company has two products: A and B. annual production and sales level of...
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The . Forrer Company has two products: A and B. annual production and sales level of Product A is 18,188 units. The annual production and sales level of Product B is 31,652. The company uses activity-based costing and has prepared the following analysis showing the estimated total cost and expected activity for each of its three activity cost pools. Activity Estimated Expected Activity Cost Pool Cost Activity 1 Activity 2 Activity 3 Product A Product B $ 80,000 200 360,000 600 58,400 1,000 800 5,400 500 Part (a) What is the total overhead cost allocated to Product B under activity-based costing (2.5 marks)? Part (b) What is the overhead cost per unit of Product B under activity-based costing (2.5 marks)? The . Forrer Company has two products: A and B. annual production and sales level of Product A is 18,188 units. The annual production and sales level of Product B is 31,652. The company uses activity-based costing and has prepared the following analysis showing the estimated total cost and expected activity for each of its three activity cost pools. Activity Estimated Expected Activity Cost Pool Cost Activity 1 Activity 2 Activity 3 Product A Product B $ 80,000 200 360,000 600 58,400 1,000 800 5,400 500 Part (a) What is the total overhead cost allocated to Product B under activity-based costing (2.5 marks)? Part (b) What is the overhead cost per unit of Product B under activity-based costing (2.5 marks)?
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Related Book For
Basic Business Statistics Concepts and Applications
ISBN: 978-0132168380
12th edition
Authors: Mark L. Berenson, David M. Levine, Timothy C. Krehbiel
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