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University Of Rochester Operations And Supply Chain Management Assignment Help - Viren Corporation


Question - 13. Viren Corporation has provided the following data from its activity-based costing system:
Activity Cost Pool Total Cost Total Activity
Assembly $387,000 25,000 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. $75.70

B. $79.66

C. $90.81

D. $29.07

The answer is not A

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