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

question 200

Multiple Choice

Dobles Corporation has provided the following data from its activity-based costing system: The company makes 420 units of product D28K 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 D28K is closest to:

• A) $95.34 per unit
• B) $93.60 per unit
• C) $74.32 per unit
• D) $89.93 per unit

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Definitions:

Statement

A general term for any kind of financial report or declaration made by a company or an individual.

Public Sector Accounting Board

A body responsible for setting accounting standards for governmental and other public sector entities.

Tax Revenue

Income that the government receives from taxpayers, including both individuals and businesses, used to fund public services and obligations.

Tax Concessions

Special exemptions, deductions, or credits provided in the tax code to encourage certain business activities or investments.