Question
Matt Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 9,000 units and
Matt Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 9,000 units and of Product B is 8,000 units. There are three activity cost pools, with total cost and total activity as follows: Total Activity Activity Cost Pool Total Cost Product A Product B Total Activity 1 $23,320 110 420 530 Activity 2 $43,200 840 240 1,080 Activity 3 $161,656 870 3,970 4,840 The activity-based costing cost per unit of Product A is closest to: (Round your intermediate calculations to 2 decimal places.) $2.10 per units $3.30 per units $9.41 per units $7.50 per units
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