Question
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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