A company makes two products: \(A\) and \(B\). It uses activity-based costing and prepares the following analysis showing budgeted overhead cost and activity usage for each of its three activities.

The company used 800 machine hours, 600 direct labor page 685 hours, and 5,400 square feet to produce 16,396 units of Product B. The overhead cost per unit of Product B using activity based costing is
a. \(\$2.02\).

b. \(\$5.00\).

c. \(\$25.00\).

d. \(\$22.40\).

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Activity (cost driver) Assembly (MH) Finishing (DLH) Factory services (sq. ft.) Budgeted Overhead $ 80,000 58,400 360,000 Budgeted Activity Usage 1,000 MH 1,600 DLH 6,000 sq. ft.