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

question 140

Multiple Choice

Vanguard Corporation has provided the following data from its activity-based costing system:
$$\begin{array} { l c l } \text { Activity Cost Pool } & \text { Total Cost } & \text { Total Activity } \\\text { Assembly } & \$ 942,480 & 66,000 \text { machine-hours } \\\text { Processing orders } & \$ 85,050 & 1,800 \text { orders } \\\text { Inspection } & \$ 126,854 & 1,820 \text { inspection-hours }\end{array}$$
The company makes 430 units of product O37W 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 O37W is closest to:

• A) $94.11 per unit.
• B) $89.72 per unit.
• C) $65.18 per unit.
• D) $92.49 per unit.

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Definitions:

Actual Distance

the physical length measured between two points, often using standard units of measurement like meters or miles.

Magnification

An exaggeration or overestimation of the importance or size of something, often seen as a cognitive distortion in psychology.

Optical Illusion

Visual perceptions that differ from objective reality, often involving misleading or distorted images that the brain interprets in a manner that diverges from the physical measurement of the stimulus source.

Optical Illusion

A visual phenomenon where what we perceive differs from objective reality, often due to the brain's interpretation of visual information.