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		10,000	units			2,000	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		$	30	per unit

Overhead costs:	Total Cost				Activity Driver	Product A		Product B
Machine setup	$	1,200.00			setups	5	setups	15	setups
Quality inspections		24,000.00			inspections	60	inspections	140	inspections
Total	$	25,200.00

Using activity-based costing to assign overhead costs, the total product cost per unit for Product A is:

Multiple Choice

• $12.75 per unit

• $13.40 per unit

• $75.60 per unit

• $78.85 per unit

• $14.60 per unit