Ellis Company Ellis Company Uses Activity-Based Costing.The Company Produces Two Products: IPods
Multiple Choice
Ellis Company
Ellis Company uses activity-based costing.The company produces two products: IPods and MP3 players.The annual production and sales volume of IPods is 8,000 units and of MP3 players is 6,000 units.There are three activity cost pools with the following expected activities and estimated total costs:
| Activity Cost Pool | Estimated Cost | Expected Activity IPods | Expected Activity MP3 players | Total |
|---|---|---|---|---|
| Activity 1 | $20,000 | 100 | 400 | 500 |
| Activity 2 | $37,000 | 800 | 200 | 1,000 |
| Activity 3 | $91,200 | 800 | 3,000 | 3,800 |
Refer to Ellis Company.Using ABC,the cost per unit of IPods is approximately:
A) $ 2.40
B) $ 3.90
C) $ 6.60
D) $10.59
Correct Answer:
Verified
Correct Answer:
Verified
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