Question

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

Ravelo Corporation has provided the following data from its activity-based costing system: Estimated Overhead Activity Cost Pools Cost Expected Activity Assembly $510,520 50,000 machine-hours Processing orders $ 60,263 1,700 orders Inspection $ 83,589 1,710 inspection-hours Data concerning the company's product L19B appear below: Annual unit production and sales Annual machine-hours Annual number of orders Annual inspection hours Direct materials cost Direct labor cost 550 1,110 190 140 $ 49.74 per unit $22.45 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.) Multiple Choice O $72.19 per unit $72.19 O $114.23 per unit O $117.48 per unit 0 $68.11 per unit

Answer 1

Activity	Total Overheads	Expected Activity Level		Rate Per Activity
Assembly	510250	50000	machine hours	$          10	per machine hour
Processing Orders	60263	1700	orders	$          35	per order
Inespection	$                 83,589	1710	inspection hours	$          49	per inspection hour

Overhead Assigned To The Product
Activity	Rate Per Activity		Activity Level	Overhead Cost
a	b		c	d=b*c
Assembly	$                10	per machine hour	1110	$        11,327.55
Processing Orders	$                35	per order	190	$          6,735.28
Inspection	$                49	per inspection hour	140	$          6,843.54
Total				$        24,906.37

Manufacturing Cost	Per Unit
Material Cost	$          49.74
Labor Cost	$          22.45
Manufacturing Overhead	$          45.29
Total	$       117.48

Correct Option: THIRD