Beartowne Enterprises uses an

activityminusbased

costing system to assign costs in its

autominusparts

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	Materials 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 costs for Part 001 is closest to (round to two decimal points)

A.

$9.37.

B.

$5.36.

C.

$5.70.

D.

$14.84.