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

question 6

Multiple Choice

Drewniak 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:

Amino Acids

Organic compounds that serve as the building blocks of proteins, containing both an amino group and a carboxyl group.

Codons

Sequences of three nucleotides in mRNA that specify the addition of a specific amino acid into a polypeptide chain during protein synthesis.

Anticodons

The three-nucleotide sequences on tRNA that are complementary to the codons on mRNA, important for the translation phase of protein synthesis.

mRNA

Messenger RNA (mRNA) is a type of RNA that conveys genetic information from DNA to the ribosome, where it specifies the amino acid sequence of the protein products of gene expression.