XYZ has provided the following data from its activity-based costing system:Time left 0:.Activity Cost PoolTotal CostTotal ActivityAssembly$ 228,06018,000 machine-hoursProcessing orders$ 34,0681,600 ordersInspection$ 125,5601,700 inspection hoursThe company makes 420 units of product YBY a year, requiring a total of 460 machine-hours, 80 orders,and 20 inspection-hours per year. The product's direct materials cost is $48.96 per unit and its direct laborcost 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. $95.77 per unitO . $93.99 per unitOd.$94.00 per unitO e.$94.26 per unitEsc .*+F6FnLockF1F2F3F4F5F7F8F9F10#3%&14.567 V8WETYUAHiJ1.60LU

Activity-Based Costing: It refers to a costing method in which costs are assigned and allocated to…

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

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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

XYZ has provided the following data from its activity-based costing system:
Time left 0:.
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 20 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. $95.77 per unit
O . $93.99 per unit
Od.
$94.00 per unit
O e.
$94.26 per unit
Esc .
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