The Manoli Company has collected the following data for use in calculating product costs:

Activity Data: (expected and actual)

	Rug Cleaners	Sweepers	Total
Units Produced	50,000	250,000	300,000
Prime Costs	$200,000	$750,000	$950,000
Direct Labor Hours	10,000	40,000	50,000
Machine Hours	20,000	10,000	30,000
Number of Setups	25	75	100
Inspection Hours	1200	,2,800	4,000
Number of Moves	140	210	350

Departmental Data: (expected and actual)

	Molding	Assembly	Total
Direct Labor Hours
Rug Cleaners	5,000	5,000	10,000
Sweepers
Total	10,000	40,000	50,000
Machine Hours
Rug Cleaners	17,000	3,000	20,000
Sweepers	3,000	7,000	10,000
Total	20,000	10,000	30,000
Overhead Costs
Machining	$120,000	$30,000	$150,000
Moving Materials	40,000	30,000	70,000
Setting Up	70,000	10,000	80,000
Inspecting Products	20,000	30,000	50,000
Total	$250,000	$100,000	$350,000

What is the unit product cost for rug cleaners using activity based costing?

	a.	$ 3.75
	b.	$ 4.00
	c.	$11.00
	d.	$ 7.26

Answer rating: 100% (QA)

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