Author Question: Activity-based budgeting would separately estimate ________. A) the cost of overhead for a ... (Read 46 times)

pepyto · **on:** Jul 5, 2018

Activity-based budgeting would separately estimate ________.

A) the cost of overhead for a department
B) a plant-wide cost-driver rate
C) the cost of a setup activity
D) All of these answers are correct.

Question 2

Juan Sugita Manufacturing expects to produce and sell 12,000 units of Big, its only product, for 20 each. Direct material cost is 3 per unit, direct labor cost is 10 per unit, and variable manufacturing overhead is 6 per unit.

Fixed manufacturing overhead is 24,000 in total. Variable selling and administrative expenses are 1 per unit, and fixed selling and administrative costs are 3,000 in total. According to generally accepted accounting principles, inventoriable cost per unit of Big would be ________.
A) 13.00 per unit
B) 14.00 per unit
C) 21.00 per unit
D) 18.50 per unit