Viren Corporation has provided the following data from its activity-based costing system:
The company makes 240 units of product T91H a year, requiring a total of 550 machine-hours, 90 orders, and 40 inspection-hours per year. The product's direct materials cost is $16.98 per unit and its direct labor cost is $12.09 per unit.
According to the activity-based costing system, the average cost of product T91H is closest to:
A) $79.66 per unit
B) $90.81 per unit
C) $29.07 per unit
D) $75.70 per unit

Question

Viren Corporation has provided the following data from its activity-based costing system: 
The company makes 240 units of product T91H a year, requiring a total of 550 machine-hours, 90 orders, and 40 inspection-hours per year. The product's direct materials cost is $16.98 per unit and its direct labor cost is $12.09 per unit.
According to the activity-based costing system, the average cost of product T91H is closest to:
A) $79.66 per unit 
B) $90.81 per unit 
C) $29.07 per unit 
D) $75.70 per unit

Quizplus · Accepted Answer

The Answer of Viren Corporation has provided the following data from its activity-based costing system: 
The company makes 240 units of product T91H a year, requiring a total of 550 machine-hours, 90 orders, and 40 inspection-hours per year. The product's direct materials cost is $16.98 per unit and its direct labor cost is $12.09 per unit.
According to the activity-based costing system, the average cost of product T91H is closest to:
A) $79.66 per unit 
B) $90.81 per unit 
C) $29.07 per unit 
D) $75.70 per unit

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