Question

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

Activity Cost Pools Total Cost Total Activity
Assembly $498,520 44,000 machine-hours
Processing orders $54,263 1,100 orders
Inspection $77,589 1,100 inspection-hours

Data concerning the company's product L19B appear below:

Annual unit production and sales 430
Annual machine-hours 990
Annual number of orders 70
Annual Inspection hours 20
Direct materials cost $37.74 per unit
Direct labor cost $10.45 per unit

According to the activity-based costing system, the average cost of product L19B is closest to:

a. $4819 per unit
b. $82.31 per unit
c. $85.56 per unit
d. $7753 per unit

Answer 1

Activity Cost Pools Total Cost Total Activity

Assembly $498,520 44,000 machine-hours

Processing orders $54,263 1,100 orders

Inspection $77,589 1,100 inspection-hours

Step-by-step explanation:

Activity Cost Pools Total Cost Total Activity

Assembly $498,520 44,000 machine-hours

Processing orders $54,263 1,100 orders

Inspection $77,589 1,100 inspection-hours