Perth Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 2,000 units and of Product B is 3,000 units. There are three activity cost pools, with estimated total cost and expected activity as follows. Estimated Expected Activity Activity Cost Pool Cost Product A Product B Total Activity 1 £9,000 400 350 750 Activity 2 £12,000 100 400 500 Activity 3 £48,000 400 1,200 1,600 The cost per unit of Product A under activity-based costing is closest to: A £6.00 B £9.60 C £8.63 D £13.80

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11. Perth Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 2,000 units and of Product B is 3,000 units. There are three activity cost pools, with estimated total cost and expected activity as follows. Estimated Expected Activity Activity Cost Pool Cost Product A Product B Total Activity 1 £9,000 400 350 750 Activity 2 £12,000 100 400 500 Activity 3 £48,000 400 1,200 1,600 The cost per unit of Product A under activity-based costing is closest to: A £6.00 B £9.60 C £8.63 D £13.80

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