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Matt Company uses activity base costing, The company. has two product :A and B. The annual production and sales of the Product A is 5,000 units and of Product B is 7,000 unit. There are three activity cost pools with estimated total cost and expected activity of the following
Expected Activity
Activity Cost Pool Estimated Cost Product A Product B Total
Activity 1 $24,000 200 400 600
Activity 2 36,000 700 200 900
Activity 3 81,200 800 3000 3800
Question 1: The cost per unit of Product B under activity base costing is what?
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