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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

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 activities:

ActivityBudgeted CostActivity Cost DriverBudgeted Activity
Product AProduct B
Activity 1102,000 Square feet4,500
4,300
Activity 2$ 77,000Units produced60007000
Activity 3$ 123,000Setups40006750


Annual production and sales level of Product A is 35,800 units, and the annual production and sales level of Product B is 71,050 units. What is the approximate overhead cost per unit of Product B under activity-based costing?



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