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1.A company has two products: A and B. It uses activity-based costing and has prepared the...

1.A company has two products: A and B. It uses activity-based costing and has prepared the following analysis showing budgeted cost and activity for each of its three activity cost pools:

Activity Cost Pool Budgeted Cost Product A Product B
Activity 1 $ 87,000 3,000 2,800
Activity 2 $ 62,000 4,500 5,500
Activity 3 $ 93,000 2,500 5,250

Annual production and sales level of Product A is 34,300 units, and the annual production and sales level of Product B is 69,550 units. What is the approximate overhead cost per unit of Product B under activity-based costing?

  • $3.00
  • $2.00
  • $10.28
  • $15.00
  • $2.33
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