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

Activity: Assembly Total Cost : $942,480 Total Activity : 66,000 Machine Hours

Activity : Processing Orders Cost : $85,050 Total Activity : 1,800 orders

Activity : Inspection Cost : $126,854 Total Activity : 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 a 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) $28.93 per unit 

C) $131.23 per unit 

D) $61.53 per unit 

E) $83.98 per unit

Answer rating: 100% (QA)

direct material cost430357215360 direct ... View the full answer