BEARTPWN ENTERPRISE USES AN ACTIVITY BASED COSTINH SYSTEM TO ASSIGN COSTS IN ITS AUTO PARTS DIVISON

Activity Allocation base Cost allocation rate Materials Assembling Packaging Est. Indirect Activity Costs $61,000 $165,000 $80,000 Material moves Direct labor hours # of finished units $3/move $3/dir, labor hour $1.50/finished unit The following units were produced in December with the following information: Part # Part 001 Part 002 Part 003 # Produced 1,450 4,500 3,650 Materials Costs $2,500 $5,000 $8,000 #Moves 300 200 2,200 Dir. Labor Hrs. 500 300 1,550 Total unit costs for Part 001 is closest to (round to two decimal points) O A. $4.88 OB. $6.77 O C. $8.90 OD. $2.94