1. Abraham Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 2,300 units and of Product B is 1,300 units. There are three activity cost pools, with estimated costs and expected activity as follows:
| Activities |
Estimated Overhead Cost |
Expected Activity |
| Product A |
Product B |
Total |
| Activity 1 |
$70,735 |
1,800 |
1,700 |
3,500 |
| Activity 2 |
$94,127 |
2,800 |
1,500 |
4,300 |
| Activity 3 |
$107,562 |
920 |
900 |
1,820
|
The overhead cost per unit of Product A is closest to:
$66.11
$75.67
$92.60
$52.34