Bearington Enterprises uses an activity-based costing system to assign costs in its auto-parts division.

Activity - Est. Indirect Activity Costs- Allocation Base- Cost Allocation Rate

Materials: $60,000 Material Moves $5.00/Move

Assembling: $175,000 Direct Labor Hours $5.00/dir. labor hour

Packaging: $70,000 # of finished units $2.50/finished unit

The following units were produced in December with the following information:

Part # # Produced Material Costs #Moves Dir. Labor Hours

Part 001 1,250 2,500 100 200

Part 002 3,500 6,000 500 300

Part 003 3,750 7,000 2,500 1,250

Total unit cost for Part 002 is closest to (rounded):

a. $5.36.

b. $5.70.

c. $9.37.

d. $3.64.