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30 October, 11:14

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

Activity Cost Pools Total Cost Total Activity

Assembly $498,520 44,000 machine-hours

Processing orders $54,263 1,100 orders

Inspection $77,589 1,100 inspection-hours

Data concerning the company's product L19B appear below:

Annual unit production and sales 430

Annual machine-hours 990

Annual number of orders 70

Annual Inspection hours 20

Direct materials cost $37.74 per unit

Direct labor cost $10.45 per unit

According to the activity-based costing system, the average cost of product L19B is closest to:

a. $4819 per unit

b. $82.31 per unit

c. $85.56 per unit

d. $7753 per unit

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Answers (1)
  1. 30 October, 13:08
    0
    Activity Cost Pools Total Cost Total Activity

    Assembly $498,520 44,000 machine-hours

    Processing orders $54,263 1,100 orders

    Inspection $77,589 1,100 inspection-hours

    Explanation:

    Activity Cost Pools Total Cost Total Activity

    Assembly $498,520 44,000 machine-hours

    Processing orders $54,263 1,100 orders

    Inspection $77,589 1,100 inspection-hours
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