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

question 189

Multiple Choice

Belsky Corporation has provided the following data from its activity-based costing system: The company makes 490 units of product Q19S a year, requiring a total of 1,080 machine-hours, 60 orders, and 20 inspection-hours per year.The product's direct materials cost is $46.42 per unit and its direct labor cost is $20.22 per unit. According to the activity-based costing system, the unit product cost of product Q19S is closest to:

• A)$97.64 per unit
• B)$66.64 per unit
• C)$93.31 per unit
• D)$94.79 per unit

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Definitions:

Amortized Cost

The cost of a financial asset or liability adjusted over time for amortization or depreciation, reflecting both the principal amount and any accrued interest or reduction.

Held-to-maturity Securities

Financial assets purchased with the intention and ability to hold them until a predetermined maturity date.

Bond Transactions

Financial transactions involving the issuance, trading, or redemption of bonds, which are debt securities that entities issue to raise capital.

Bond Sale

The issuance of debt securities by an entity to raise funds from investors, promising to pay back with interest.