Arthur Company has two products: S and D. The company uses activity-based costing and has prepared the following analysis showing the estimated total cost and expected activity for each of its three activity cost pools:Activity Cost PoolsEstimated Overhead CostExpected Activity??Product SProduct DTotalActivity 1$20,000 100400500Activity 2$14,600 500250750Activity 3$90,000 3002,7003,000The annual production and sales of Product S is 4,547 units. The annual production and sales of Product D is 7,913.The overhead cost per unit of Product S under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.)
A. $5.00
B. $10.00
C. $1.98
D. $1.83
Answer: A
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