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Vanguard Corporation has provided the following data from its activity-based costing system: Activity Cost Pool Total Cost Total Activity Assembly $ 858,000 6000 machine-hours Processing
Vanguard Corporation has provided the following data from its activity-based costing system:
Activity Cost Pool | Total Cost | Total Activity | |||
Assembly | $ | 858,000 | 6000 | machine-hours | |
Processing orders | $ | 70950 | 1,500 | orders | |
Inspection | $ | 106096 | 1,520 | inspection-hours | |
The company makes 400 units of product O37W a year, requiring a total of 650 machine-hours, 30 orders, and 15inspection-hours per year. The product's direct materials cost is $35.80 per unit and its direct labor cost is $29.50 per unit.
According to the activity-based costing system, the average cost of product O37W is closest to:
91.16
92.09
94.70
65.30
$92.49 per unit.
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