A company has two products: A and B. It uses activity-based costing and has prepared the following analysis showing budgeted cost and activity for each of its three activity cost pools:
| |
|
Budgeted Activity |
| Activity Cost Pool |
Budgeted Cost |
Product A |
Product B |
| Activity 1 |
$153,300 |
4,300 |
4,100 |
| Activity 2 |
$104,880 |
7,100 |
8,100 |
| Activity 3 |
$138,320 |
3,800 |
6,600 |
Annual production and sales level of Product A is 78,500 units, and the annual production and sales level of Product B is 25,700 units. What is the approximate overhead cost per unit of Product B under activity-based costing?