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 |
$177,100 |
4,700 |
4,500 |
Activity 2 |
$119,280 |
7,900 |
8,900 |
Activity 3 |
$153,440 |
4,200 |
7,000 |
Annual production and sales level of Product A is 92,100 units, and the annual production and sales level of Product B is 23,400 units. What is the approximate overhead cost per unit of Product B under activity-based costing?