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Knowledge Check 01 Activities Activity Rates Assembly $ 14.35 per machine-hour Processing Orders $ 47.85 per...

Knowledge Check 01 Activities Activity Rates Assembly $ 14.35 per machine-hour Processing Orders $ 47.85 per order inspection $ 70.30 per inspection-hour True Blue Corporation provided the data set forth above from its activity-based costing system. The company makes 430 units of product D28K a year, requiring a total of 690 machine-hours, 40 orders, and 10 inspection-hours per year. The product's direct materials cost is $35.82 per unit and its direct labor cost is $29.56 per unit. What is the unit product cost of product D28K? What is the unit product cost of product D28K?

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Answer #1

Calculate the unit product cost as follows:

1冫 1 Direct materials cost 3 Assembly 4 Processing orders 5 Inspection 6 Total cost 7 Number of units manufactured 15402.60 12710.80 9901.50 1914.00 703.00 40631.90 430.00 94.49 8 Unit product cost

Therefore, the unit product cost of product D28K is $94.49.

Above figures have been calculated in the following manner:

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