The cost per unit of Product A is closest to

Abrams Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 300 units and of Product B is 1,000 units. There are three activity cost pools, with estimated costs and expected activity as follows:

 

 

Expected Activity

Activity Cost Pool

Estimated Cost

Product A

Product B

Total

Activity 1

$7,356

200

200

400

Activity 2

$30,555

1,400

700

2,100

Activity 3

$16,169

90

300

390

The cost per unit of Product A is closest to:

A) $41.60

B) $92.60

C) $12.44

D) $68.00