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

question 133

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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