Dobles Corporation has provided the following data from its activity-based costing system: Activities Assembly Estimated Overhead Cost Expected Activity $957,000 Processing orders $88,290 Inspection $130,130 66,000 machine-hours 1,800 orders 1,820 inspection-hours The company makes 430 units of product D28K a year, requiring a total of 690 machine hours, 40 orders, and 10 inspection hours per year. The product's direct materials cost is $36.03 per unit and its direct labor cost is $29.77 per unit. According to the activity-based costing system, the unit product cost of product D28K is closest to: a. $95.29 per unit b. $65.80 per unit c. $86.00 per unit d. $93.67 per unit
Dobles Corporation has provided the following data from its activity-based costing system: Activities Assembly Estimated Overhead Cost Expected Activity $957,000 Processing orders $88,290 Inspection $130,130 66,000 machine-hours 1,800 orders 1,820 inspection-hours The company makes 430 units of product D28K a year, requiring a total of 690 machine hours, 40 orders, and 10 inspection hours per year. The product's direct materials cost is $36.03 per unit and its direct labor cost is $29.77 per unit. According to the activity-based costing system, the unit product cost of product D28K is closest to: a. $95.29 per unit b. $65.80 per unit c. $86.00 per unit d. $93.67 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
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Problem 2CE: Corazon Manufacturing Company has a purchasing department staffed by five purchasing agents. Each...
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Provide answer the general accounting

Transcribed Image Text:Dobles Corporation has provided the following data from its activity-based
costing system:
Activities
Assembly
Estimated Overhead Cost Expected Activity
$957,000
Processing orders $88,290
Inspection
$130,130
66,000 machine-hours
1,800 orders
1,820 inspection-hours
The company makes 430 units of product D28K a year, requiring a total of
690 machine hours, 40 orders, and 10 inspection hours per year. The
product's direct materials cost is $36.03 per unit and its direct labor cost is
$29.77 per unit.
According to the activity-based costing system, the unit product cost of
product D28K is closest to:
a. $95.29 per unit
b. $65.80 per unit
c. $86.00 per unit
d. $93.67 per unit
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