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: (Round your intermediate calculations to 2 decimal places.) |
|
$5.26 |
|
$8.46 |
|
$7.16 |
|
$12.25 |
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