Annika Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 4,000 units and of Product B is 1,000 units. There are three activity cost pools, with estimated total cost and expected activity as follows:

The budgeted cost per unit of Product A under activity-based costing is closest to:

	a.	$20.40
	b.	$10.00
	c.	$18.15
	d.	$17.00

Expected Level of Activity Driver Estimated Activity Cost Pool Product A Product B Total 1,000 batches Activity 1.. $18,000 700batches 300 batches 500 100 600 Aciviy .. $24,000 400 promotions promotions promotions 800 1,200 Activity 3.. $60,000