2. Viren Corporation has provided the following data from its activity-based cos

Question

2. Viren Corporation has provided the following data from its activity-based costing system:

Activity Cost Pool Total Cost Total Activity

Assembly $387,000 250,000 machine-hours
Processing Orders $68,510 1,700 orders
Inspection $129,117 1,930 inspection-hours

The company makes 240 units of product T91H a year, requiring a total of 550 machine hours, 90 orders, and 40 inspection hours per year. The product's direct materials cost is $16.98 per unit, and its direct labor cost is $12.09 per unit. According to the activity-based costing system, the average cost of product T91H is closest to _______ per unit.

A. $90.81
B. $29.07
C. $79.66
D. $75.70

Explanation / Answer

B. $29.07

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