Question: Vanguard Corporation has provided the following data from its activity-based costing system: Activity Cost Pool Total Cost Total Activity Assembly $ 967,480 67,000 machine-hours Processing
Vanguard Corporation has provided the following data from its activity-based costing system:
| Activity Cost Pool | Total Cost | Total Activity | |||
| Assembly | $ | 967,480 | 67,000 | machine-hours | |
| Processing orders | $ | 71,475 | 1,500 | orders | |
| Inspection | $ | 107,160 | 1,520 | inspection-hours | |
The company makes 470 units of product O37W a year, requiring a total of 720 machine-hours, 40 orders, and 15 inspection-hours per year. The product's direct materials cost is $36.36 per unit and its direct labor cost is $29.78 per unit.
According to the activity-based costing system, the average cost of product O37W is closest to:
$66.14 per unit.
$90.51 per unit.
$92.32 per unit.
$94.57 per unit.
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