Abrams Company uses activity based costing. The company has two products: A and B. The annual production and sales of Product A is 300 units and of Product B is 1,000 units. There are three activity cost pools, with estimated costs and expected activity as follows:
|
|
|
Expected Activity |
||
|
Activity Cost Pool |
Estimated Cost |
Product A |
Product B |
Total |
|
Activity 1 |
$7,356 |
200 |
200 |
400 |
|
Activity 2 |
$30,555 |
1,400 |
700 |
2,100 |
|
Activity 3 |
$16,169 |
90 |
300 |
390 |
The cost per unit of Product A is closest to:
A) $41.60
B) $92.60
C) $12.44
D) $68.00