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 Standard under activity-based costing?

A) $1.75
B) $9.00
C) $15.00
D) $16.00