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

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Definitions:

Synthetic Division

A simplified method of dividing polynomials, especially useful for dividing by linear factors.

Divide

A mathematical operation that represents dividing one quantity by another to find out how many times the divisor fits into the dividend.

Division

Division is a fundamental arithmetic operation that divides a number (the dividend) by another (the divisor) to find a quotient, possibly with a remainder.

Division

A mathematical operation symbolized by ÷ or /, indicating the splitting of a quantity into equal parts or the process of finding how many times one number is contained into another.