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Bridget Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 1,500 units and

Bridget Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 1,500 units and of Product B is 3,000 units. There are three activity cost pools, with estimated total cost and expected activity as follows:

Expected Activity
Activity Cost Pool Estimated Cost Product A Product B Total
Activity 1 $10,000 420 350 770
Activity 2 12,000 120 420 540
Activity 3 50,000 490 1,162 1,652

The cost per unit of Product A under activity-based costing is closest to which of the following?

Multiple Choice

$6.00

$8.63

$15.30

$13.80

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