Belsky corporation activity based costing


Problem: Belsky Corporation has provided the following data from its activity-based costing system:

Activity Cost Pool    Total Cost    Total   Activity
Assembly               $313,490    29,000 machine-hours
Processing orders    $ 49,476      1,400 orders
Inspection               $ 73,882      1,060 inspection-hours

The company makes 490 units of product Q19S a year, requiring a total of 1,080 machine-hours, 60 orders, and 20 inspection-hours per year. The product's direct material cost is $46.42 per unit and its direct labor cost is $20.22 per unit.

According to the Activity-Based costing system, the average cost of product Q19S is closest to:

A) $97.64 per unit
B) $66.64 per unit
C) $93.31 per unit
D) $94.79 per unit

Solution Preview :

Prepared by a verified Expert
Accounting Basics: Belsky corporation activity based costing
Reference No:- TGS01895828

Now Priced at $20 (50% Discount)

Recommended (96%)

Rated (4.8/5)