A company has two products: Big and Little. It uses activity-based costing and has prepared the following analysis showing budgeted cost and activity for each of its three activity cost pools: 
Annual production and sales level of big product is 62,525 units, and the annual production and sales level of little product is 251,900 units.
a. Compute the approximate overhead cost per unit of big product under activity-based costing.
b. Compute the approximate overhead cost per unit of little product under activity-based costing.
Definitions:
Overallocated
The condition when resources, such as time, money, or materials, are assigned or committed beyond the capacity or availability.
Underallocated
refers to resources or efforts that are insufficient or less than what is needed for a particular purpose or to achieve optimal efficiency.
Marginal Cost
Marginal Cost is the cost of producing one additional unit of a product or service, a crucial concept in decision-making and pricing strategies.
Monopolist
An entity that holds exclusive control over the supply of a particular good or service, allowing them to manipulate market conditions.
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