Annika Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 4,000 units and of Product B is 1,000 units. There are three activity cost pools, with total cost and activity as follows:  Total ActivityActivity Cost PoolTotal CostProduct AProduct BTotalActivity 1$18,0007003001,000Activity 2$24,000500100600Activity 3$60,0008004001,200The activity-based costing cost per unit of Product A is closest to:

A. $20.40
B. $10.00
C. $17.00
D. $18.15


Answer: D

Business

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