Elandem Ltd. produces 20,000 units of Product L and 20,000 units of Product M. Under activity-based costing, $120,000 of costs are purchasing-related. Each period, 240 purchase orders are produced and the number of orders used by each product is as follows:
|
Product L |
Product M |
|
|
Number of Orders |
80 |
160 |
What is the per-unit activity-based cost of purchasing for Products L and M, respectively?
$2; $4
$3; $3
$500 each
$6; $4