Question: Vanguard Corporation has provided the following data from its activity-based costing system: Activity Cost Pool Total Cost Total Activity Assembly $ 873,520 61,000 machine-hours Processing

Vanguard Corporation has provided the following data from its activity-based costing system:

Activity Cost Pool Total Cost Total Activity
Assembly $ 873,520 61,000 machine-hours
Processing orders $ 75,760 1,600 orders
Inspection $ 113,238 1,620 inspection-hours

The company makes 410 units of product O37W a year, requiring a total of 660 machine-hours, 40 orders, and 20 inspection-hours per year. The product's direct materials cost is $35.88 per unit and its direct labor cost is $29.54 per unit.

According to the activity-based costing system, the average cost of product O37W is closest to:

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!