Text: Ring Inc. uses activity-based costing. The company produces two products: Clips and Rings. The expected annual production of Clips is 1,800 units, while the expected annual production of Rings is 2,100 units. There are three activity cost pools: Assembly, Testing, and Packing. The estimated costs and activities for each of these three activity pools follows:

Expected activity

Activity cost pool Estimated cost Clips Rings Total

Assembly	$5,848	600	120	720
Testing	$25,615	1,000	610	1,610
Packing	$2,201	80	185	265

In the table above we are talking about a number of assemblies, testing, and packing operations needed for the production.

The overhead cost per unit of Rings would be closest to ________ (round all answers to two decimal places, take into account expected production numbers).

Ring Inc. uses activity-based costing. The company produces two products: Clips and Rings. The expected annual production of Clips is 1,800 units, while the expected annual production of Rings is 2,100 units. There are three activity cost pools: Assembly, Testing, and Packing. The estimated costs and activities for each of these three activity pools follows: In the table above we are talking about a number of assemblies, testing, and packing operations needed for the production. The overhead cost per unit of Rings would be closest to (round all answers to two decimal places, take into account expected production numbers). $5.82 $10.21 $11.92 $6.79