Question

Ravelo Corporation has provided the following data from its activity-based costing system: Activity Cost Pools Assembly Processing orders Inspection Estimated Overhead Cost Expected Activity $503, 520 46,500 machine-hours $ 56,763 1,350 orders $ 80,089 1,360 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 480 1,040 120 70 $42.74 per unit $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

Total Direct Material Cost = $ 42.74 per unit * 480 units

Total direct labor cost = $ 15.45 per unit * 480 units

Total Overhead = $ 20429.35052182160

Total Cost = Total Direct Material Cost + Total direct labor cost + Total Overhead

= $ 48360.5505218216

Unit Product Cost = Total Cost / Units

= $ 48360.5505218216 / 480 Units

= $ 100.75

Answer : $ 100.75

Note:

Activity Cost Pool	Estimated Overhead Cost	Expected activity	Activity rate ( Estimated Overhead Cost/ Expected activity)	Activity for L19B	Overhead allocated to L19B( Activity rate * Activity for L19B)
Assembly	503520	46500	10.82838709677420	1040	Machine Hours	11261.52258064520
Processing Orders	56763	1350	42.04666666666670	120	Orders	5,045.60
Inspection	80089	1360	58.88897058823530	70	Inspection hours	4122.227941176470
						20429.35052182160