Lindsey Company uses activity-based costing.The company has two products: A and B.The annual production and sales of Product A is 5,000 units and of Product B is 2,000 units.There are three activity cost pools, with estimated total cost and expected activity as follows: The overhead cost per unit of Product A under activity-based costing is closest to:
A)$14.11
B)$13.77
C)$7.00
D)$17.70

Question

Lindsey Company uses activity-based costing.The company has two products: A and B.The annual production and sales of Product A is 5,000 units and of Product B is 2,000 units.There are three activity cost pools, with estimated total cost and expected activity as follows:   The overhead cost per unit of Product A under activity-based costing is closest to:
A)$14.11 
B)$13.77 
C)$7.00 
D)$17.70

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Lindsey Company Uses Activity-Based Costing