A company uses activity-based costing to determine the costs of its three products: A, and B. The budgeted cost and activity for each of the company's three activity cost pools are shown in the following table:

Budgeted Activity

Activity Cost Pool Budgeted Cost Product A Product B

Activity 1 $104,000 4,700 4,500

Activity 2 $79,000 6,200 7,200

Activity 3 $127,000 4,200 6,950

Annual production and sales level of Product A is 36,000 units, and the annual production and sales level of Product B is 71,250 units. What is the approximate overhead cost per unit of Product A under activity-based costing?

Multiple Choice

• $1.48
• $3.82
• $2.42
• $10.26
• $11.30