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

question 38

Multiple Choice

Belsky Corporation has provided the following data from its activity-based costing system: The company makes 490 units of product Q19S a year, requiring a total of 1,080 machine-hours, 60 orders, and 20 inspection-hours per year. The product's direct materials cost is $46.42 per unit and its direct labor cost is $20.22 per unit. According to the activity-based costing system, the average cost of product Q19S is closest to:

• A)$97.64 per unit
• B)$66.64 per unit
• C)$93.31 per unit
• D)$94.79 per unit

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Definitions:

Union Workers

Employees who are members of a labor union, which represents them in negotiations with employers over wages, benefits, and working conditions.

Productive

Relates to the capability of producing a significant amount or result, especially in terms of work or economy.

Nonunion Workers

Employees who are not members of a labor union and do not receive the collective bargaining advantages that unionized workers might have.

Unionized Workers

Employees who are members of a labor union, which represents their interests in negotiations with employers.