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

question 16

Multiple Choice

Vanguard 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.

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Definitions:

Dishwashing

The process of cleaning cooking utensils, dishes, and other kitchenware, typically done manually by hand or using a dishwasher.

Absolute Advantage

The capacity of a nation, person, corporation, or area to generate a product or service at a cheaper per-unit expense than any other party.

Brownies

A type of chocolate cake that is typically baked in a square or rectangular shape.

Cookies

Small, usually sweet baked goods that are often made with flour, sugar, and some type of oil or fat.