XYZ has provided the following data from its activity-based costing system: Activity Cost Pool Total Cost Total Activity Assembly $228,060 18,000 machine-hours Processing orders $ 34,068 1,600 orders Inspection $ 125,560 1,700 inspection hours The company makes 420 units of product YBY a year, requiring a total of 460 machine-hours, 80 orders, and 10 inspection-hours per year. The product's direct materials cost is $48.96 per unit and its direct labor cost is $25.36 per unit.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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XYZ has provided the following data from its activity-based costing system:
Activity Cost Pool
Total Cost
Total Activity
Assembly
$228,060
18,000 machine-hours
Processing orders
$34,068
1,600 orders
Inspection
$ 125,560
1,700 inspection hours
The company makes 420 units of product YBY a year, requiring a total of 460 machine-hours, 80
orders, and 10 inspection-hours per year. The product's direct materials cost is $48.96 per unit and
its direct labor cost is $25.36 per unit.
Transcribed Image Text:XYZ has provided the following data from its activity-based costing system: Activity Cost Pool Total Cost Total Activity Assembly $228,060 18,000 machine-hours Processing orders $34,068 1,600 orders Inspection $ 125,560 1,700 inspection hours The company makes 420 units of product YBY a year, requiring a total of 460 machine-hours, 80 orders, and 10 inspection-hours per year. The product's direct materials cost is $48.96 per unit and its direct labor cost is $25.36 per unit.
According to the activity-based costing system, the average cost of product YBY is closest to:
O a. None of the given answer is correct.
O b. $94.00 per unit
Oc. $95.77 per unit
O d. $94.26 per unit
O e. $93.99 per unit
Transcribed Image Text:According to the activity-based costing system, the average cost of product YBY is closest to: O a. None of the given answer is correct. O b. $94.00 per unit Oc. $95.77 per unit O d. $94.26 per unit O e. $93.99 per unit
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