Xphone Inc. produces 12,000 units of a cell phones. The production requires prime costs (direct materials and direct labor) of $400,000, uses 2,500 machine hours, and takes 1,800 setup hours. The activity rates are $50 per machine hour and $130 per setup hour. What is the unit cost of a cell phone?

A. $60.95 

B. $40.85 

C. $63.25 

D. $100.65 

Answer rating: 100% (QA)

Option C Unit Cost Prime co... View the full answer