TB MC Qu. 17-133 (Algo) A company has two products...

A company has two products: A and B. It uses activity-based costing and has prepared the following analysis showing budgeted cost and activity for each of its three activities:

Activity	Budgeted Cost	Activity Cost Driver	Budgeted Activity
			Product A	Product B
Activity 1	$ 99,000	Square feet	4,200	4,000
Activity 2	$ 74,000	Units produced	5,700	6,700
Activity 3	$ 117,000	Setups	3,700	6,450

Annual production and sales level of Product A is 35,500 units, and the annual production and sales level of Product B is 70,750 units. What is the approximate overhead cost per unit of Product B under activity-based costing?

Multiple Choice

• $3.59

• $2.30

• $10.27

• $12.07

• $1.68