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.
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.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 13E: Wyandotte Company provided the following information for the last calendar year: During the year,...
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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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd6b000ca-b52a-4184-93cf-f27e7a6bce98%2F00bc7872-eca0-4dc9-8fcf-f9b643099706%2F7xhl94s_processed.jpeg&w=3840&q=75)
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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd6b000ca-b52a-4184-93cf-f27e7a6bce98%2F00bc7872-eca0-4dc9-8fcf-f9b643099706%2Fifuyqj_processed.jpeg&w=3840&q=75)
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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