Kozlov Corporation Has Provided the Following Data from Its Activity-Based

Kozlov Corporation has provided the following data from its activity-based costing system: $$\begin{array} { l l l } \text { Activity Cost Pool } & \text { Total Cost } & \text { Total Activity } \\\text { Assembly } & \$ 942,480 & 66,000 \text { machine hours } \\\text { Processing orders } & \$ 85,050 & 1,800 \text { orders } \\\text { Inspection } & \$ 126,854 & 1,820 \text { inspection hours }\end{array}$$ The company makes 430 units of product A21W a year, requiring a total of 690 machine-hours, 40 orders, and 10 inspection-hours per year. The product's direct materials cost is $35.72 per unit and its direct labor cost is $29.46 per unit.
- According to the activity-based costing system, the average cost of product A21W is closest to:

A) $89.72 per unit
B) $65.18 per unit
C) $64.99 per unit
D) $92.49 per unit
E) $94.11 per unit

Correct Answer:

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