Ivanhoe Company produces two products: Standard and Deluxe. The company uses an activity-based costing system. Ivanhoe produced 8400 units of Standard and 2400 units of Deluxe. The company uses two activity cost pools, with estimated total cost and activity as follows: Expected Activity Activity Cost Pool Estimated Cost Standard Deluxe #1 $12400 540 290 #2 $24400 440 1240 What is the cost per unit of Standard under activity-based costing? $14.52 $7.50 $1.72 $14.94
Ivanhoe Company produces two products: Standard and Deluxe. The company uses an activity-based costing system. Ivanhoe produced 8400 units of Standard and 2400 units of Deluxe. The company uses two activity cost pools, with estimated total cost and activity as follows:
Expected Activity
Activity Cost Pool
Estimated Cost
Standard
Deluxe
#1
$12400
540
290
#2
$24400
440
1240
What is the cost per unit of Standard under activity-based costing?
$14.52
$7.50
$1.72
$14.94
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