Vodopich Corporation has provided the following data from its activity-based cos

Question

Vodopich Corporation has provided the following data from its activity-based costing system: Activity Cost Pool Total Cost Total Activity Assembly $698,950.00 35,000 machine-hours Processing orders $85,101.00 1,900 orders Inspection $107,440.00 1,580 inspection-hours Data concerning the company's product P58Z appear below: Annual unit production and sales 400 Annual machine-hours 1,000 Annual number of orders 90 Annual inspection-hours 30 Direct material cost $34.78 per unit Direct labor cost $23.52 per unit According to the activity-based costing system, the unit product cost of product P58Z is closest to: Answer a. $113.33 per unit b. $58.30 per unit c. $123.40 per unit d. $118.30 per unit

Explanation / Answer

b. $58.30 per unit

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