How much overhead cost will be assigned to each unit of product using activity-based costing (ABC) ?

A) Dog food: $4.62; cat food: $4.62.
B) Dog food: $2.64; cat food: $2.64.
C) Dog food: $8.60; cat food: $0.33.
D) Dog food: $0.26; cat food: $8.60.
E) Dog food: $0.12; cat food: $3.85.

Activity-Based Costing

An accounting technique that assigns costs to units based on the activities needed to produce or deliver them, enhancing costing accuracy.

Overhead Cost

Indirect costs related to the general operation of the company, such as rent, utilities, and management salaries, not directly tied to production or sales.

Unit

A single, complete, or individual item that can be counted for inventory, production, or sales purposes.