3. A company manufactures two products: A and B. The company's accounting records revealed the following per-unit cost:s for direct material and direct labor Production volume (units) Direct material Direct labor Product A 2,500 $40 Product B 10,000 $60 2 hours at $12/hour $24 3 hours at $12/hour $36 Management is considering a shift to activity-based costing and gathered the following data Expected Activity Product B Total Estimated Cost Activitv cost driver S240,000 $600,000 S120,000 Product A Activitv Cost Pool Setups General factor Machine processing Number of setups Direct labor hours Machine hours 80 10,000 2,000 40 10,000 1,000 120 20,000 3,000 Assuming that actual activity is the same as expected activity, what is the unit product cost of Product B under activity-based costing? a. $138 b. $123 c. $118 d. $96 e. None of the above