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Pat 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
Pat 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 900 units. There are three activity cost pools, with estimated costs and expected activity as follows: Activities Estimated Overhead Cost Expected Activity Product A Product B Total Activity 1 $33,839 1,000 900 1,900 Activity 2 $53,703 2,000 700 2,700 Activity 3 $67,850 600 580 1,180 The overhead cost per unit of Product A under activity-based costing is closest to:
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