Beartowne Enterprises uses an

activityminusbased

costing system to assign costs in its

autominusparts

division.

Activity

Est. Indirect Activity

Costs

Allocation base

Cost allocation rate

Materials

$60,000

Material moves

$5.00/move

Assembling

$175,000

Direct labor hours

$5.00/dir. labor hour

Packaging

$70,000

# of finished units

$2.50/finished unit

The following units were produced in December with the following information:

Part #

# Produced

Materials Costs

# Moves

Dir. Labor Hours.

Part 001

1,250

$2,500

100

200

Part 002

3,500

$6,000

500

300

Part 003

3,750

$7,000

2,500

1,250

Total unit costs for Part 001 is closest to (round to two decimal points)

A.

$9.37.

B.

$5.36.

C.

$5.70.

D.

$14.84.