Question: Paparo Corporation has provided the following data from its activity-based costing system: Activity Cost Pool Total Cost Total Activity Assembly $ 831,300 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 $ 831,300 51,000 machine-hours
Processing orders $ 49,010 1,300 orders
Inspection $ 98,905 1,310 inspection-hours

Data concerning the company's product Q79Y appear below:

Annual unit production and sales 450
Annual machine-hours 1,010
Annual number of orders 55
Annual inspection hours 30
Direct materials cost $ 46.00 per unit
Direct labor cost $ 41.07 per unit

According to the activity-based costing system, the average cost of product Q79Y is closest to:

Multiple Choice

  • $133.30 per unit

  • $87.07 per unit

  • $129.50 per unit

  • $141.07 per unit

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