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San Diego State University Operations And Supply Chain Management Assignment Help - Process


Question - Matt Company uses activity-based costing. The company has two products: A and B. The annual
production and sales of Product A is 9,000 units and of Product B is 7,500 units. There are three
activity cost pools, with total cost and total activity as follows:

Total Activity
Activity Cost Pool Total Cost Product A Product B Total
Activity 1 $29,295 220 410 630
Activity 2 $46,895 910 220 1,130
Activity 3 $130,315 840 3,050 3,890

The activity-based costing cost per unit of Product A is closest to:
I know the answer to this is 8.46 but i have no idea why! IN ORDER FOR ME TO RATE YOU MUST
GIVE A STEP BY STEP PROCESS HOW TO TO DO THIS!! THANK YOU!

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