Paparo Corporation has provided the following data from its activity-based costing system: Activity Cost Pool Assembly Total Cost Total Activity $ 846,040 $ 64,056 $ 102,408 52,000 machine-hours Processing orders Inspection 1,700 orders 1,360 inspection-hours Data concerning the company's product Q79Y appear below: Annual unit production and sales 450 Annual machine-hours 1,080 Annual number of orders 70 Annual inspection hours 20 Direct materials cost $ 44.00 per unit $ 41.03 per unit Direct labor cost According to the activity-based costing system, the average cost of product Q79Y is closest to:
Paparo Corporation has provided the following data from its activity-based costing system: Activity Cost Pool Assembly Total Cost Total Activity $ 846,040 $ 64,056 $ 102,408 52,000 machine-hours Processing orders Inspection 1,700 orders 1,360 inspection-hours Data concerning the company's product Q79Y appear below: Annual unit production and sales 450 Annual machine-hours 1,080 Annual number of orders 70 Annual inspection hours 20 Direct materials cost $ 44.00 per unit $ 41.03 per unit Direct labor cost According to the activity-based costing system, the average cost of product Q79Y is closest to:
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 27E: Plata Company has identified the following overhead activities, costs, and activity drivers for the...
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