Paparo Corporation has provided the following data from its activity-based costing system: Data concerning the company's product Q79Y appear below:
According to the activity-based costing system, the average cost of product Q79Y is closest to:
A) $133.29 per unit
B) $85.03 per unit
C) $127.43 per unit
D) $129.94 per unit

Question

Paparo Corporation has provided the following data from its activity-based costing system:  Data concerning the company's product Q79Y appear below:
 According to the activity-based costing system, the average cost of product Q79Y is closest to:
A) $133.29 per unit 
B) $85.03 per unit 
C) $127.43 per unit 
D) $129.94 per unit

Quizplus · Accepted Answer

The activity rates for each activity cost pool are computed as follows:
 11eacbfc_c664_e6cb_8ffe_6f52fba9ef90_TB7552_00 The overhead cost charged to Product K54A is:
 11eacbfc_c664_e6cc_8ffe_81cca454409d_TB7552_00 11eacbfc_c664_e6cd_8ffe_55ac242cde50_TB7552_00 Cost per unit = $59,978.70 ÷ 450 units = $133.29 per unit

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