Dalton Industries has provided the following data from its activity-based costing system: Activities Assembly Estimated Overhead Cost Expected Activity $820,000 60,000 machine-hours 1,600 orders Processing orders $75,600 Inspection $110,500 1,700 inspection-hours The company makes 500 units of product Q45Y each year, requiring a total of 750 machine-hours, 50 orders, and 15 inspection hours. The product's direct materials cost is $40.20 per unit and its direct labor cost is $32.50 per unit. According to the activity-based costing system, the unit product cost of product Q45Y is closest to: (a) $67.30 per unit (b) $105.80 per unit (c) $98.88 per unit (d) $90.42 per unit

Dalton Industries has provided the following data from its activity-based costing system: Activities Assembly Estimated Overhead Cost Expected Activity $820,000 60,000 machine-hours 1,600 orders Processing orders $75,600 Inspection $110,500 1,700 inspection-hours The company makes 500 units of product Q45Y each year, requiring a total of 750 machine-hours, 50 orders, and 15 inspection hours. The product's direct materials cost is $40.20 per unit and its direct labor cost is $32.50 per unit. According to the activity-based costing system, the unit product cost of product Q45Y is closest to: (a) $67.30 per unit (b) $105.80 per unit (c) $98.88 per unit (d) $90.42 per unit

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter3: Cost Behavior

Section: Chapter Questions

Problem 2CE: Corazon Manufacturing Company has a purchasing department staffed by five purchasing agents. Each...

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