Belsky Corporation has provided the following data from its activity-based costing system: The company makes 490 units of product Q19S a year, requiring a total of 1, 080 machine-hours, 60 orders, and 20 inspection-hours per year.The product's direct materials cost is $46.42 per unit and its direct labor cost is $20.22 per unit. According to the activity-based costing system, the average cost of product Q19S is closest to:
A)$97.64 per unit
B)$66.64 per unit
C)$93.31 per unit
D)$94.79 per unit

Question

Belsky Corporation has provided the following data from its activity-based costing system:  The company makes 490 units of product Q19S a year, requiring a total of 1, 080 machine-hours, 60 orders, and 20 inspection-hours per year.The product's direct materials cost is $46.42 per unit and its direct labor cost is $20.22 per unit. According to the activity-based costing system, the average cost of product Q19S is closest to:
A)$97.64 per unit 
B)$66.64 per unit 
C)$93.31 per unit 
D)$94.79 per unit

Quizplus · Accepted Answer

The activity rates for each activity cost pool are computed as follows:
 11eaa0c8_9567_747f_9cb2_e732f4430d19_TB2487_00 The overhead cost charged to Product O37W is:
 11eaa0c8_9567_9b90_9cb2_55fca1d94624_TB2487_00 
 11eaa0c8_9567_9b91_9cb2_3d0fa52d2b53_TB2487_00 Cost per unit = $47, 842.80 ÷ 490 units = $97.64 per unit

Belsky Corporation Has Provided the Following Data from Its Activity-Based