Assume that a pet food manufacturer is considering adding two types of pet food to its existing product line. Research had determined that good demand exists for dog food in 40-pound bags and cat food in 1/2pound cans.

The company identified the following partial list of activities, costs, and activity drivers expected for the next year:

Refer to the data above. How much overhead cost will be assigned to each unit of product using activity-based costing (ABC)?

? Dog food: $4.62: cat food: $4.62

? Dog food: $2.64: cat food $2.64

? Dog food: $8.60: cat food: $0.33.

? Dog food: $0.26: cat food: $8.60

? Dog food: $0.12: cat food: $3.85.

Activity Handling materials Storage costs Production volume Batches made Expected Costs $105,000 $820,000 Weight of finished product Cost Driver Number of batches made Dog Food 100,000 units 200 batches Cat Food 200,000 units 150 batches