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Question(s) / Instruction(s):

Matt Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 9,000 units and of Product B is 7,500 units. There are three activity cost pools, with total cost and total activity as follows:

 

   

Total Activity

Activity Cost Pool

Total Cost

Product A

Product B

Total

Activity 1

$29,295

220

410

630

Activity 2

$46,895

910

220

1,130

Activity 3

$130,315

840

3,050

3,890

 

The activity-based costing cost per unit of Product A is closest to: (Round your intermediate calculations to 2 decimal places.)

$7.16

$8.46

$12.25

$5.26

 

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