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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