Find the unit product cost of product is closest to

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Reference no: EM132502313

H.K. Corporation has provided the following data from its activity-based costing system:

Activity Cost Pool Total Cost Total Activity

Assembly .................... $698,950 35,000 machine-hours
Processing orders ....... $85,101 1,900 orders
Inspection ................... $107,440 1,580 insp cation-hours Data concerning the company‘s product P5 SZ appear below: Annual unit production and sales ...... 400
Annual machine -h0urs ....................... 1,000
Annual number of orders ................... 90
Annual inspection hours .................... 30
Direct materials cost .......................... $34.78 per unit
Direct labor cost ................................. $23.52 per unit

Question 1: According to the activity-based costing system, the unit product cost of product P5 82 is closest to:

a. $113.33 per unit

b.  $58.30 per unit

c. $123.40 per unit

d. $118.30 per unit

Reference no: EM132502313

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