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Business, 20.04.2020 20:44 friskisthebest1

Annika Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 4,000 units and of Product B is 1,000 units. There are three activity cost pools, with total cost and activity as follows:

Total Activity
Activity Cost Pool Total Cost Product A Product B Total
Activity 1 $ 18,000 700 300 1,000
Activity 2 $ 24,000 500 100 600
Activity 3 $ 60,000 800 400 1,200

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

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