Murphy Company Produces Two Products: Standard and Deluxe

Multiple Choice

Murphy Company produces two products: Standard and Deluxe.The company uses an activity-based costing system.Murphy produces 8,000 units of Standard and 2,000 units of Deluxe.The company uses two activity cost pools, with estimated total cost and activity as follows: What is the cost per unit of Deluxe under activity-based costing?

A) $1.75
B) $11.00
C) $15.00
D) $16.00