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

question 7

Multiple Choice

Drewniak Corporation has provided the following data from its activity-based costing system: 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
• E)$64.99 per unit

---

Definitions:

Corporate Charter

A corporate charter is a legal document establishing a corporation and outlining its structure, objectives, and operations as recognized by the state.

Cash Dividend

This is a payment made by a company out of its earnings to shareholders, distributed in the form of cash.

Par Common Stock

The nominal or face value assigned to a share of common stock in the company’s charter.

Cumulative Preferred Stock

Stock that has a right to receive regular dividends that were not declared (paid) in prior years.