Silver Company manufactures several different products and uses an activity-based costing system.Information from its system for the year for all products follows: $$\begin{array} { | l | c | r | l | }
\hline \text { Activity cost pool } & { \text { Total cast } } & { \text { Total activity } } \
\hline \text { Assembly } & \$ o 266,000 & 14,000 & \text { machine-hours } \
\hline \text { Pracessing arders } & \$ o 86,400 & 3,600 & \text { Orders } \
\hline \text { Inspection } & \$ o 18,630 & 2,300 & \text { inspection-hours } \
\hline
\end{array}$$ The annual production and sales of one of its products,the Zinger,are 1,000 units.The following data relate to the production and sales of Zingers in the most recent year:
11ea84ce_c55a_24b0_83dc_4b1929bba0c4 What is the average cost of one Zinger?
A)$ 19.96
B)$195.16
C)$226.30
D)$155.24

Question

Silver Company manufactures several different products and uses an activity-based costing system.Information from its system for the year for all products follows: $$\begin{array} { | l | c  | r | l | } 
\hline \text { Activity cost pool } &  { \text { Total cast } } & { \text { Total activity } } \
\hline \text { Assembly } & \$ o 266,000 & 14,000 & \text { machine-hours } \
\hline \text { Pracessing arders } & \$ o 86,400 & 3,600 & \text { Orders } \
\hline \text { Inspection } & \$ o 18,630 & 2,300 & \text { inspection-hours } \
\hline
\end{array}$$ The annual production and sales of one of its products,the Zinger,are 1,000 units.The following data relate to the production and sales of Zingers in the most recent year:
11ea84ce_c55a_24b0_83dc_4b1929bba0c4 What is the average cost of one Zinger?
A)$ 19.96
B)$195.16
C)$226.30
D)$155.24

Quizplus · Accepted Answer

The Answer of  Silver Company manufactures several different products and uses an activity-based costing system.Information from its system for the year for all products follows: $$\begin{array} { | l | c  | r | l | } 
\hline \text { Activity cost pool } &  { \text { Total cast } } & { \text { Total activity } } \
\hline \text { Assembly } & \$ o 266,000 & 14,000 & \text { machine-hours } \
\hline \text { Pracessing arders } & \$ o 86,400 & 3,600 & \text { Orders } \
\hline \text { Inspection } & \$ o 18,630 & 2,300 & \text { inspection-hours } \
\hline
\end{array}$$ The annual production and sales of one of its products,the Zinger,are 1,000 units.The following data relate to the production and sales of Zingers in the most recent year:
11ea84ce_c55a_24b0_83dc_4b1929bba0c4 What is the average cost of one Zinger?
A)$ 19.96
B)$195.16
C)$226.30
D)$155.24

Silver Company Manufactures Several Different Products and Uses an Activity-Based