Answer:
$18.15
Explanation:
Activity based costing is a costing techniques used to assign cost in management account to the various units of a company the estimated activity level in the departments as a basis for cost apportionment or allocation.
Given that
Cost Pool Total Cost Product A Product B Total Activity
Activity 1 $ 18,000 700 300 1,000
Activity 2 $ 24,000 500 100 600
Activity 3 $ 60,000 800 400 1,200
The total cost for product A
= 700/1000 * $18,000 + 500/600 * $24,000 + 800/1200 * $60000
= $12,600 + $20,000 + 40,000
= $72,600
Total units for A = 4000 units
cost per unit of Product A is closest to
= $72,600/4000
= $18.15
