The Unit Product Cost of Product I9 Under Activity-Based Costing

question 61

Multiple Choice

The unit product cost of Product I9 under activity-based costing is closest to:

• A)$458.53 per unit
• B)$744.34 per unit
• C)$687.14 per unit
• D)$708.74 per unit

---

Definitions:

Throughput Time

Throughput Time is the total time taken to produce a product, from the start of production to its completion.

Manufacturing Cycle Efficiency

A measure of the efficiency of the production process, calculated as the ratio of value-added time to total cycle time.

Margin

The difference between the selling price of a product and its cost, typically expressed as a percentage of the selling price.

Turnover

The total sales made by a company in a specific period, or the rate at which inventory is sold and replaced.