cost per unit of regular under activity based costing question germaine company uses 3267990

Cost per unit of regular under activity-based costing

Question: Germaine Company uses activity-based costing. The company has two products: Regular and Deluxe. The annual production and sales of Regular is 10,000 units and of Deluxe is 4,000 units. There are three activity cost pools, with estimated total cost and expected activity as follows:

Estimated

Expected Activity

Activity Cost Pool

Cost

Regular

Deluxe

Total

Activity 1

$25,000

150

100

250

Activity 2

65,000

800

200

1,000

Activity 3

90,000

1,000

2,000

3,000

The cost per unit of Regular under activity-based costing is closest to:

A) $9.70.

B) $6.00.

C) $3.00.

D) $1.50.

Cost per unit of regular under activity-based costing
Accounting Basics

 

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