Silver Company Manufactures Several Different Products and Uses an Activity-Based

question 128

Multiple Choice

Silver Company manufactures several different products and uses an activity-based costing system.Information from its system for the year for all products follows: $$\begin{array} { | l | c | r | l | } \hline \text { Activity cost pool } & { \text { Total cast } } & { \text { Total activity } } \\\hline \text { Assembly } & \$ o 266,000 & 14,000 & \text { machine-hours } \\\hline \text { Pracessing arders } & \$ o 86,400 & 3,600 & \text { Orders } \\\hline \text { Inspection } & \$ o 18,630 & 2,300 & \text { inspection-hours } \\\hline\end{array}$$ The annual production and sales of one of its products,the Zinger,are 1,000 units.The following data relate to the production and sales of Zingers in the most recent year:
11ea84ce_c55a_24b0_83dc_4b1929bba0c4 What is the average cost of one Zinger?

• A)$ 19.96
• B)$195.16
• C)$226.30
• D)$155.24

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