The Homer Corporation produces two products, and reports the following production and cost information for the most recent accounting period.

	Product A				Product B
Number of units produced		17,000	units			3,500	units
Direct labor @ $20 per direct labor hour (DLH)		0.50	DLH per unit			2.00	DLH per unit
Direct materials cost	$	2	per unit		$	32	per unit

Overhead costs:	Total Cost				Activity Driver	Product A		Product B
Machine setup	$	2,700.00			setups	5	setups	20	setups
Quality inspections		43,800.00			inspections	80	inspections	170	inspections
Total	$	46,500.00

Using direct labor hours as the basis for assigning overhead costs, the total product cost per unit for Product B is:

Multiple Choice

$12.00 per unit

$13.50 per unit

$72.00 per unit

$78.00 per unit

$14.00 per unit