Ravelo Corporation has provided the following data from its activity-based costing system: Data concerning the company's product L19B appear below: According to the activity-based costing system, the average cost of product L19B is closest to:
A)$48.19 per unit
B)$82.31 per unit
C)$85.56 per unit
D)$77.53 per unit

Question

Ravelo Corporation has provided the following data from its activity-based costing system:  Data concerning the company's product L19B appear below:  According to the activity-based costing system, the average cost of product L19B is closest to:
A)$48.19 per unit 
B)$82.31 per unit 
C)$85.56 per unit 
D)$77.53 per unit

Quizplus · Accepted Answer

The activity rates for each activity cost pool are computed as follows:
 11eaa0c8_9566_d83b_9cb2_ab6d5afdcca3_TB2487_00 The overhead cost charged to Product K54A is:
 11eaa0c8_9566_ff4c_9cb2_b749d30d5286_TB2487_00 
 11eaa0c8_9566_ff4d_9cb2_97faef34b11f_TB2487_00 Cost per unit = $36, 789.50 ÷ 430 units = $85.56 per unit

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