Ravelo Corporation has provided the following data from its activity based costing system:
|
Activity Cost Pool |
Total Cost |
Total Activity |
|
Assembly |
$498,520 |
44,000 machine hours |
|
Processing orders |
$54,263 |
1,100 orders |
|
Inspection |
$77,589 |
1,110 inspection hours |
Data concerning the company’s product L19B appear below:
|
Annual unit production and sales |
430 |
|
Annual machine hours |
990 |
|
Annual number of orders |
70 |
|
Annual inspection hours |
20 |
|
Direct materials cost |
$37.74 per unit |
|
Direct labor cost |
$10.45 per unit |
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