A company has two products: A1 and B2. It uses activity-based costing and has prepared the following analysis showing budgeted cost and activity for each of its three activity cost pools: Budgeted ActivityActivity Cost PoolBudgeted CostProduct A1Product B2Activity 1$48,000 1,200 4,800 Activity 2$63,000 2,240 4,760 Activity 3$80,000 7,200 800 Annual production and sales level of Product A1 is 8,480 units, and the annual production and sales level of Product B2 is 22,310 units. What is the approximate overhead cost per unit of Product B2 under activity-based costing?
A. $12.00
B. $10.00
C. $9.00
D. $4.00
E. $8.00
Answer: D
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