Calculate the approximate overhead cost per unit


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?

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Accounting Basics: Calculate the approximate overhead cost per unit
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