AltaVista Company produces two products, A and B. The annual production and sales of product A and B are 800 and 500 units, respectively. The company has traditionally used direct labor hours to apply manufacturing overhead. Product A requires .3 labor hours per unit and product B requires .2 labor hours per unit. The company has decided to utilize activity based costing with three cost pools. Estimated costs for each pool are as follows:

Activity

Estimated Overhead

Expected Activity

Cost Pool

Costs

Product A

Product B

Total

Activity 1	$24,025	450	420	870
Activity 2	$16,880	2,000	750	2,750
General Factory	$32,014	120	150	270

Total

$72,919

The overhead cost per unit for product A using activity based costing system is closest to:

	A.	$28.25
	B.	$48.67
	C.	$14.69
	D.	$22.51