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

question 18

Multiple Choice

Viren Corporation has provided the following data from its activity-based costing system:
The company makes 240 units of product T91H a year, requiring a total of 550 machine-hours, 90 orders, and 40 inspection-hours per year. The product's direct materials cost is $16.98 per unit and its direct labor cost is $12.09 per unit.
According to the activity-based costing system, the average cost of product T91H is closest to:

• A) $79.66 per unit
• B) $90.81 per unit
• C) $29.07 per unit
• D) $75.70 per unit

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