Haridan Co. uses activity-based costing. The company has two products, A and B. The annual production and sales of Product A are 8,000 units and of product B 6,000 units. There are three activity cost pools, with estimated total cost and expected activity as follows:
|
Expected activity |
||||
|
Activity cost pool |
Estimated cost |
Product A |
Product B |
Total |
|
Activity 1 |
$20,000 |
100 |
400 |
500 |
|
Activity 2 |
$37,000 |
800 |
200 |
1,000 |
|
Activity 3 |
$91,200 |
800 |
3,000 |
3,800 |
Calculate the cost per unit of Product A and Product B under activity-based costing.