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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