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Sarah Company has two products: T and V. The company uses activity-based costing and has prepared the following analysis, showing the estimated total overhead cost
Sarah Company has two products: T and V. The company uses activity-based costing and has prepared the following analysis, showing the estimated total overhead cost and expected activity for each of its three activity cost pools: Activity Cost Pool Activity 1 Activity 2 Activity 3 Expected Activity Estimated Product Product Total Cost T V $30,000 200 400 600 39,000 400 900 1,300 80,000 400 3,600 4,000 The annual production and sales of Product Tis 10,640 units. The annual production and sales of Product Vis 26,600. The overhead cost per unit of Product V under activity-based costing is closest to which of the following? $4.50. $6.88
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