18. Matt Company uses activity-based costing. The company has two products: A and B. The...
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18. Matt 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 7,000 units. There are three activity cost pools, with estimated total cost and expected activity as follows: Expected Activity Product A Product B Total Activity Cost Pool Estimated Cost $24,000 200 400 600 Activity 1 Activity 2 Activity 3 36,000 700 200 900 81,200 800 3,000 3,800 The cost per unit of Product B under activity-based costing is closest to which of the following? A. $15.60 B. $12.59 C. $16.45 D. $13.50
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