Question: Vanguard Corporation has provided the following data from its activity-based costing system: Activity Cost Pool Total Cost Total Activity Assembly $ 936,000 65,000 machine-hours Processing

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

Activity Cost Pool Total Cost Total Activity
Assembly $ 936,000 65,000 machine-hours
Processing orders $ 95,100 2,000 orders
Inspection $ 142,006 2,020 inspection-hours

The company makes 450 units of product O37W a year, requiring a total of 700 machine-hours, 50 orders, and 10 inspection-hours per year. The product's direct materials cost is $36.20 per unit and its direct labor cost is $29.70 per unit.

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

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