Question: Paparo Corporation has provided the following data from its activity-based costing system: Activity Cost Pool Total Cost Total Activity Assembly $ 872,100 51,000 machine-hours Processing
Paparo Corporation has provided the following data from its activity-based costing system:
| Activity Cost Pool | Total Cost | Total Activity | |||||||
| Assembly | $ | 872,100 | 51,000 | machine-hours | |||||
| Processing orders | $ | 77,000 | 2,000 | orders | |||||
| Inspection | $ | 113,337 | 1,470 | inspection-hours | |||||
Data concerning the company's product Q79Y appear below:
| Annual unit production and sales | 700 | ||||||||
| Annual machine-hours | 1,170 | ||||||||
| Annual number of orders | 135 | ||||||||
| Annual inspection hours | 40 | ||||||||
| Direct materials cost | $ | 46.00 | per unit | ||||||
| Direct labor cost | $ | 41.39 | per unit | ||||||
According to the activity-based costing system, the average cost of product Q79Y is closest to:
Multiple Choice
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$127.80 per unit
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$87.39 per unit
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$132.70 per unit
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$142.99 per unit
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