Pat Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 4,000 units and of Product B is 1,000 units. There are three activity cost pools, with estimated total cost and expected activity as follows:

	Estimated	Expected Activity
Activity Cost Pools	Overhead Cost	Product A	Product B	Total
Activity 1	$18,000	700	300	1,000
Activity 2	$24,000	500	100	600
Activity 3	$60,000	800	400	1,200

The overhead cost per unit of Product A under activity-based costing is closest to:

Question 25 options:

A)

$20.40

B)

$10.00

C)

$17.00

D)

$18.15