Refer to the data above. 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.

Assume that a pet food manufacturer is considering adding two types of pet food to its existing product line. Research had determined that good demand exists for dog food in 40-pound bags and cat food in 1/2 pound cans. The company identified the following partial list of activities, costs, and activity drivers expected for the next year: Activity Handling materials Storage costs Expected Costs Cost Driver $105,000 Number of batches made $820,000 Weight of finished product Production volume Batches made Dog Food 100,000 units 200 batches Cat Food 200,000 units 150 batches