Question

Hello all, could someone please help me answer this 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 $516,520 53,000 machine-hours $ 63,263 2,000 orders $ 86,589 2,010 inspection-hours Data concerning the company's product L19B appear below: 610 1,170 250 Annual unit production and sales Annual machine-hours Annual number of orders Annual inspection hours Direct materials cost Direct labor cost 200 $ 55.74 per unit $ 28.45 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 $84.19 per unit $126.73 per unit $129.98 per unit $69.83 per unit

Answer 1

Working Notes.

Assembly Cost Per Hrs. = Total Assembly Cost / Machiner Hrs.

= $ 516520 / 53,000

= $ 9.75 per hrs assembly cost

Processing Order cost for per order = Processing order cost / nos. of orders

= $ 63263 / 2000

= $ 31.63 per order

Inspection cost per hrs.= Total Inspection cost / Inspection hrs.

= $ 86589 / 2010

= $ 43.08 per inspection hrs.

Product cost of Per Unit :-

Particular	Per Unit ($)	Total Cost
Direct Material Cost ( 610 X 55.74)	55.74	34001.40
Direct Labour Cost (610 X 28.45)	28.45	17354.50
Total Assembly cost ( 1170 X 9.75)	9.75	11407.50
Processiong Order cost ( 250 X 31.63)	31.63	7907.50
Inspection cost (200 X 43.08)	43.08	8760
Total		79430.90

Per unit cost of product L19B=  Total cost / Nos of unit production

=$ 79430.90 / 610

= $ 130.21 Per unit

From multiple choice option answer is 3rd options = $ 129.98 per unit approximately