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

question 67

Multiple Choice

Dobles Corporation has provided the following data from its activity-based costing system: The company makes 420 units of product D28K a year,requiring a total of 460 machine-hours,80 orders,and 10 inspection-hours per year.The product's direct materials cost is $48.96 per unit and its direct labor cost is $25.36 per unit. According to the activity-based costing system,the unit product cost of product D28K is closest to:

• A)$95.34 per unit
• B)$93.60 per unit
• C)$74.32 per unit
• D)$89.93 per unit

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Definitions:

Strait of Gibraltar

A narrow passage of water connecting the Atlantic Ocean to the Mediterranean Sea, bordered by Spain in the north and Morocco in the south.

Atlantic Ocean

The Atlantic Ocean is the second-largest ocean in the world, separating the continents of North America and Europe to the west from Africa and Europe to the east.

Sediment

Particles of rock, soil, or biological origin that are transported and deposited by wind, water, or ice.

Sedimentary Rocks

Rocks formed by the accumulation and cementation of mineral and organic particles on the Earth's surface, often containing fossils.