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Matt Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 10,000 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 10,000 units and of Product B is 8,000 units. There are three activity cost pools, with estimated total cost and expected activity as follows: Expected Activity Activity Cost Estimated Cost Product A Product B Total Pool Activity 1 $20,000 400 500 900 Activity 2 Activity 3 37,000 1,000 200 1,200 91,200 1,600 3,600 5,200 The cost per unit of Product A under activity-based costing is closest to which of the following? (Round your final answer to 2 decimal places.) Multiple Choice $2.40 $678
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