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. Budgeted Activity Activity Cost Pool Budgeted Cost Product A Product B Activity 1 $79,200 2,500 2,300 Activity 2 $69,300 4,000 5,000 Activity 3 $91,800 2,000 4,800 Annual production and sales level of Product A is 33,800 units, and the annual production and sales level of Product B is 69,100 units. What is the approximate overhead cost per unit of Product A under activity-based costing? $11.67 $7.70 $16.50 $13.50 $2.93

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.

		Budgeted Activity
Activity Cost Pool	Budgeted Cost	Product A	Product B
Activity 1	$79,200	2,500	2,300
Activity 2	$69,300	4,000	5,000
Activity 3	$91,800	2,000	4,800

Annual production and sales level of Product A is 33,800 units, and the annual production and sales level of Product B is 69,100 units. What is the approximate overhead cost per unit of Product A under activity-based costing?
$11.67
$7.70
$16.50
 $13.50
$2.93


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