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 activity cost pools:

				Budgeted Activity
Activity Cost Pool	Budgeted Cost			Product A1			Product B2
Activity 1	$	65,000			2,900			6,500
Activity 2	$	80,000			3,940			6,460
Activity 3	$	114,000			8,900			2,500

Annual production and sales level of Product A1 is 10,180 units, and the annual production and sales level of Product B2 is 24,010 units. What is the approximate overhead cost per unit of Product A1 under activity-based costing?

Multiple Choice

• $10.00

• $4.98

• $6.91

• $13.69

• $7.69