Question
Paparo Corporation has provided the following data from its activity-based costing system: Activity Cost Pool Total Cost Total Activity Assembly $ 813,600 48,000 machine-hours Processing
Paparo Corporation has provided the following data from its activity-based costing system:
| Activity Cost Pool | Total Cost | Total Activity | |||||||
| Assembly | $ | 813,600 | 48,000 | machine-hours | |||||
| Processing orders | $ | 65,195 | 1,700 | orders | |||||
| Inspection | $ | 110,592 | 1,440 | inspection-hours | |||||
Data concerning the company's product Q79Y appear below:
| Annual unit production and sales | 550 | ||||||||
| Annual machine-hours | 1,140 | ||||||||
| Annual number of orders | 120 | ||||||||
| Annual inspection hours | 25 | ||||||||
| Direct materials cost | $ | 43.00 | per unit | ||||||
| Direct labor cost | $ | 41.33 | per unit | ||||||
According to the activity-based costing system, the average cost of product Q79Y is closest to:
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Surviving An IRS Tax Audit
Authors: Frederick W. Daily
3rd Edition
1413318649, 978-1413318647
