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

question 33

Multiple Choice

Petitte Corporation has provided the following data from its activity-based costing system: Data concerning the company's product K54A appear below: According to the activity-based costing system,the average cost of product K54A is closest to:

• A)$112.64 per unit
• B)$114.99 per unit
• C)$116.98 per unit
• D)$76.91 per unit

---

Definitions:

Straight-Line Depreciation

A technique for apportioning the price of a physical asset over its effective duration in steady annual portions.

Salvage Value

The expected salvage value of an asset after it has served its useful life.

Service Life

The expected period during which an asset remains usable, functional, or productive before it requires replacement or major repair.

Capitalize Interest

The process of adding the cost of interest on a loan to the balance of the loan instead of paying it out.