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ABC components uses an activity based costing system for its product costing. For the last quarter, the following data relates to costs, output volume and

ABC components uses an activity based costing system for its product costing. For the last quarter, the following data relates to costs, output volume and cost drivers:

Overhead Costs Dollars

Machinery 172,000

Set ups 66,000

Materials Handling 45,000

Total 283,000

Product Information: A B C

Production and sales 4,000 units 3,000 2,000

Number of production runs 12 5 8

number of stores orders 12 6 4

If set up costs are driven by the number of production runs, what is the set up cost per unit traced to product A?

a. 7.92$

b. 7.00$

c. 16.50$

d. 7.33$

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