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What is the approximate overhead cost per unit

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Question - 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 $ 88,000 3,100 2,900

Activity 2 $ 63,000 4,600 5,600

Activity 3 $ 95,000 2,600 5,350

Annual production and sales level of Product A is 34,400 units, and the annual production and sales level of Product B is 69,650 units. What is the approximate overhead cost per unit of Product A under activity-based costing?

$2.26

$3.05

$2.03

$10.29

$14.67

Reference no: EM132197315

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