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

The company makes 430 units of product O37W a year,requiring a total of 690 machine-hours,40 orders,and 10 inspection-hours per year.The product's direct materials cost is $35.72 per unit and its direct labor cost is $29.46 per unit.According to the activity-based costing system,the average cost of product O37W is closest to:

A) $94.11 per unit.
B) $89.72 per unit.
C) $65.18 per unit.
D) $92.49 per unit.

Question

Vanguard Corporation has provided the following data from its activity-based costing system:
 
The company makes 430 units of product O37W a year,requiring a total of 690 machine-hours,40 orders,and 10 inspection-hours per year.The product's direct materials cost is $35.72 per unit and its direct labor cost is $29.46 per unit.According to the activity-based costing system,the average cost of product O37W is closest to:

A) $94.11 per unit. 
B) $89.72 per unit. 
C) $65.18 per unit. 
D) $92.49 per unit.

Quizplus · Accepted Answer

The Answer of Vanguard Corporation has provided the following data from its activity-based costing system:
 
The company makes 430 units of product O37W a year,requiring a total of 690 machine-hours,40 orders,and 10 inspection-hours per year.The product's direct materials cost is $35.72 per unit and its direct labor cost is $29.46 per unit.According to the activity-based costing system,the average cost of product O37W is closest to:

A) $94.11 per unit. 
B) $89.72 per unit. 
C) $65.18 per unit. 
D) $92.49 per unit.

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