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Drewniak Corporation has provided the following data from its activity-based costing system: Activity Cost Pool Total Cost Total Activity Assembly --------------------------$942,480 66,000 machine hours Processing

Drewniak Corporation has provided the following data from its activity-based costing system:

Activity Cost Pool Total Cost Total Activity

Assembly --------------------------$942,480 66,000 machine hours

Processing orders --------------- 85,050 1,800 orders

Inspection ------------------------- $126,854 1,820 inspection hours

The company makes 430 units of product O37W a year, requiring a total of 690 machine-hours, 40 orders, and 10 inspection-hours per year. The product's direct materials cost is $35.72 per unit and its direct labor cost is $29.46 per unit.

According to the activity-based costing system, the average cost of product O37W is closest to:

a.

$94.11 per unit

b.

$89.72 per unit

c.

$65.18 per unit

d.

$92.49 per unit

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