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Matt Company Uses Activity-Based Costing \quad \quad \quad

question 53

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Matt Company uses activity-based costing. The company has two products: A andB. The annual production and sales of Product A is 8,000 units and of Product B is 6,000 units. There are three activity cost pools, with estimated total cost and expected activity as follows: \quad \quad \quad \quad \quad \quad \quad \quad \quad  Estimated Expectedactivity \text { Estimated \quad\quad\quad Expectedactivity }
 Activity CostPool Cost ProductAProduct BTotal  Activity1 £20,000100400500 Activity2£37,0008002001,000 Activity3 £91,2008003,0003,800\begin{array}{lrr}\text { Activity CostPool }&\text {Cost }&\text {ProductA}&\text {Product B}&\text {Total }\\ \text { Activity1 } &£20,000&100&400&500\\ \text { Activity2} &£37,000&800&200&1,000\\ \text { Activity3 } &£91,200&800&3,000&3,800\\\end{array}

The cost per unit of Product A under activity-based costing is closest to

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Definitions:

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