Grosbeak Company uses activity-based costing. The company has two products: A and B.
The annual production and sales of Product A is 5,000 units and of Product B is 10,000 units.
There are three activity cost pools, with total cost and activity as follows:
Total Activity Activity Cost Pool Total Cost Product A Product B Total Activity 1 $ 20,000 700 300 1,000 Activity 2 $ 30,000 400 800 1,200 Activity 3 $ 15,000 200 200 400 The activity-based costing cost per unit of Product B is $____________.
Round to the nearest cent.
You must show all your calculations.