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XAE-1 company is reviewing the behavior of its various activities. XAD is considering various costs. The...

XAE-1 company is reviewing the behavior of its various activities. XAD is considering various costs. The company manufactures two models of computers. The laptop computer (model MX10) is a top of the line, deluxe model. The tower computer (model DX 20) is the regular model. The following activity data is provided: Activity Usage Measures Model MX10 Model DX20 Total Units produced annually 15,000 40,000 55,000 Prime costs $40,000 $100,000 $140,000 Machine hours 40,000 60,000 100,000 Production runs 14 6 20 Direct labor hours 20,000 30,000 50,000 The company primarily has three major activities as follows in the production process: Activity Activity Cost Setups $50,000 Inspections $30,000 Power $15,000 Calculate the unit cost of model MX 10. Select one: a. $7.10 b. $3.53 c. $5.20 d. Some other cost not listed here

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