University Of New South Wales Operations And Supply Chain Management Assignment Help - Matt Company

Question - Matt Company uses activity-based costing. The company has two products: A and B. The annual
production and sales of Product A is 10,000 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 $25,200 130 430 560
Activity 2 $39,960 820 290 1,110
Activity 3 $145,215 820 3,790 4,610

The activity-based costing cost per unit of Product A is closest to: (Round your intermediate
calculations to 2 decimal places.)
$16.07
$2.02
$6.12
$2.22

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