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Nuclear company has obtained the following data concerning a new product: Per Unit Production Costs, Using traditional costing method...............$6.00 Production Costs, Using acitvity-based costing method............$5.00

Nuclear company has obtained the following data concerning a new product:

Per Unit

Production Costs, Using traditional costing method...............$6.00

Production Costs, Using acitvity-based costing method............$5.00

Nonproduction Costs, Using acitvity-based costing method.........$1.50

The production process used for the new product is very simple and it has a higher proportion of direct costs than indirect costs than indirect costs. How much total cost is assigned to each unit?

A) $11.00

B) 6.50

C) 7.50

D) 6.00

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