Paparo Corporation has provided the following data from its activity-based costi

Question

Paparo Corporation has provided the following data from its activity-based costing system: Activity Cost Pool Total Cost Total Activity Assembly $ 965,700 58,000 machine-hours Processing orders $ 76,100 2,000 orders Inspection $ 105,156 1,380 inspection-hours Data concerning the company's product Q79Y appear below: Annual unit production and sales 800 Annual machine-hours 1,080 Annual number of orders 90 Annual inspection hours 30 Direct materials cost $ 53.00 per unit Direct labor cost $ 41.21 per unit According to the activity-based costing system, the average cost of product Q79Y is closest to:

Explanation / Answer

Calculate average cost of product Q79Y :

Direct material (800*53) 42400 Direct labour (800*41.21) 32968 Overhead cost Assembly (965700/58000*1080) 17982 Processing order (76100/2000*90) 3424.50 Inspection (105156/1380*30) 2286 Total cost 99060.50 Units 800 Average cost of product Q79Y 123.83

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.