Abbe Company uses activity based costing. The company has two products: A and B. The annual production and sales of Product A is 800 units and of Product B is 600 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 |
$17,460 |
600 |
600 |
1,200 |
|
Activity 2 |
$19,987 |
1,700 |
600 |
2,300 |
|
Activity 3 |
$29,884 |
400 |
120 |
520 |
The cost per unit of Product B is closest to:
A) $25.90
B) $11.49
C) $34.73
D) $48.09