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Matt Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 9,000 units and of Product B is 6,500 units. There are three activity cost pools, with total cost and total activity as follows:
Total Activity
Activity Cost Pool
Total Cost
Product A
Product B
Total
Activity 1
$26,840
140
470
610
Activity 2
$42,705
880
290
1,170
Activity 3
$125,700
830
3,360
4,190
The activity-based costing cost per unit of Product A is closest to: (Round your intermediate calculations to 2 decimal places.)
A.
$4.82
B.
$7.02
C.
$2.32
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