Question

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

Activity Cost Pools	Estimated Overhead Cost			Expected Activity
Assembly	$	973,510		67,000	machine-hours
Processing orders	$	93,765		1,900	orders
Inspection	$	133,176		1,860	inspection-hours

The company makes 440 units of product Q19S a year, requiring a total of 700 machine-hours, 41 orders, and 11 inspection-hours per year. The product's direct materials cost is $36.07 per unit and its direct labor cost is $29.81 per unit.

According to the activity-based costing system, the unit product cost of product Q19S is closest to: (Round your intermediate calculations to 2 decimal places.)

Answer 1

Direct material cost = 36.07

Direct labour cost = 29.81

Assembly cost driver per unit

= 973,510/67, 000

= 14.53

Processing order per unit

= 93,765/1900

= 49.35

Inspection per unit

= 133,176/1860

= 71.60

Total cost

Direct material = 440*36.07 = 15,870.80

Direct labor = 440*29.81 = 13,116.40

Assembly = 700*14.53 = 10,171

Processing cost = 41*49.35 = 2,023.35

Inspection cost = 71.60*11 = 787.60

Total cost = $41, 969.15

Cost per unit

= 41,969.15/440

= $95.38

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