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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 $ 936,000 65,000 machine-hours Processing
Vanguard Corporation has provided the following data from its activity-based costing system:
Activity Cost Pool | Total Cost | Total Activity | |||
Assembly | $ | 936,000 | 65,000 | machine-hours | |
Processing orders | $ | 95,100 | 2,000 | orders | |
Inspection | $ | 142,006 | 2,020 | inspection-hours | |
The company makes 450 units of product O37W a year, requiring a total of 700 machine-hours, 50 orders, and 10 inspection-hours per year. The product's direct materials cost is $36.20 per unit and its direct labor cost is $29.70 per unit.
According to the activity-based costing system, the average cost of product O37W is closest to:
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