Question: Vanguard Corporation has provided the following data from its activity-based costing system: Activity Cost Pool Total Cost Total Activity Assembly $ 1,127,280 77,000 machine-hours Processing
Vanguard Corporation has provided the following data from its activity-based costing system:
| Activity Cost Pool | Total Cost | Total Activity | |||
| Assembly | $ | 1,127,280 | 77,000 | machine-hours | |
| Processing orders | $ | 91,065 | 1,950 | orders | |
| Inspection | $ | 141,570 | 1,980 | inspection-hours | |
The company makes 430 units of product O37W a year, requiring a total of 660 machine-hours, 50 orders, and 10 inspection-hours per year. The product's direct materials cost is $37.16 per unit and its direct labor cost is $30.18 per unit.
According to the activity-based costing system, the average cost of product O37W is closest to:
$95.24 per unit.
$67.34 per unit.
$96.90 per unit.
$91.47 per unit.
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