A company has two products: A1 and B2. 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 ActivityProduct A1Product B2Activity 1$ 58,000Square feet2,2005,800Activity 2$ 73,000Units repaired3,2405,760Activity 3$ 100,000Orders8,2001,800

Annual production and sales level of Product A1 is 9,480 units, and the annual production and sales level of Product B2 is 23,310 units. What is the approximate overhead cost per unit of Product A1 under activity-based costing?

Select one:

a. $8.11

b. $4.58

c. $13.10

d. $7.25

e. $10.00