A company has two products: A and B. It uses activity-based costing and has prepared the following analysis showing budgeted cost and activity for each of its three activity cost pools:

 

      Budgeted Activity Activity Cost

Pool Budgeted

Cost Product A Product B Activity 1 $ 90,000     3,300     3,100   Activity 2 $ 65,000     4,800     5,800   Activity 3 $ 99,000     2,800     5,550  

 

Annual production and sales level of Product A is 34,600 units, and the annual production and sales level of Product B is 69,850 units. What is the approximate overhead cost per unit of Product B under activity-based costing?

Multiple Choice

• $3.15
• $2.08
• $10.29
• $14.06
• $2.14