Question

Ravelo Corporation has provided the following data from its activity-based costing system:

Activity Cost Pools	Estimated Overhead Cost		Expected Activity
Assembly	$	503,520	46,500	machine-hours
Processing orders	$	56,763	1,350	orders
Inspection	$	80,089	1,360	inspection-hours

Data concerning the company's product L19B appear below:

Annual unit production and sales		480
Annual machine-hours		1,040
Annual number of orders		120
Annual inspection hours		70
Direct materials cost	$	42.74	per unit
Direct labor cost	$	15.45	per unit

According to the activity-based costing system, the unit product cost of product L19B is closest to: (Round your intermediate calculations to 2 decimal places.)

Answer 1

	Activity Cost Pools	Estimated OH Cost	Expected Activity	Activity Rate
	Assembly	503,520	46,500	10.83
	Processing Order	56,763	1,350	42.05
	Inspection	80,089	1,360	58.89
	Allocation of OH Cost to Product L19B:
		Activity Usage	Activity Rate	Allocation
	Assembly	1,040	10.83	11,263.20
	Processing Order	120	42.05	5,046.00
	Inspection	70	58.89	4,122.30
			Total OH Cost	20,431.50
			Units	480
			OH Cost PU	42.57
	Direct Material	42.74
	Direct Labor	15.45
	OH Cost PU	42.57
	Total Cost	100.76