Paparo Corporation has provided the following data from its activity-based costing system: Total Cost $1,005,000 Assembly Processing orders Inspection Activity Cost Pool Data concerning the company's product Q79Y appear below: Annual unit production and sales Annual machine-hours Annual number of orders Annual inspection hours Direct materials cost Direct labor cost Multiple Choice O O According to the activity-based costing system, the average cost of product Q79Y is closest to: $168.52 per unit $ 83,930 2,200 orders $ 106,960 1,400 inspection-hours $96.25 per unit Total Activity 60,000 machine-hours $131.30 per unit $151.15 per unit 350 1,100 100 40 $55.00 per unit $41.25 per unit

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Paparo Corporation has provided the following data from its activity-based costing system:
Total
Cost
$1,005,000
Activity
Cost Pool
Assembly
Processing orders
Inspection
Data concerning the company's product Q79Y appear below:
Annual unit production and sales
Annual machine-hours
Annual number of orders
Annual inspection hours
Direct materials cost
Direct labor cost
Multiple Choice
$168.52 per unit
Total Activity
60,000 machine-hours
2,200 orders
$
83,930
$ 106,960 1,400 inspection-hours
According to the activity-based costing system, the average cost of product Q79Y is closest to:
$96.25 per unit
$131.30 per unit
O $151.15 per unit
350
1,100
100
40
$55.00 per unit
$41.25 per unit
Transcribed Image Text:Paparo Corporation has provided the following data from its activity-based costing system: Total Cost $1,005,000 Activity Cost Pool Assembly Processing orders Inspection Data concerning the company's product Q79Y appear below: Annual unit production and sales Annual machine-hours Annual number of orders Annual inspection hours Direct materials cost Direct labor cost Multiple Choice $168.52 per unit Total Activity 60,000 machine-hours 2,200 orders $ 83,930 $ 106,960 1,400 inspection-hours According to the activity-based costing system, the average cost of product Q79Y is closest to: $96.25 per unit $131.30 per unit O $151.15 per unit 350 1,100 100 40 $55.00 per unit $41.25 per unit
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