Table 1 Activity Cost Pool Total Cost Total Activity Assembly $ 942,480 66,000 machine-hours Processing orders $ 85,050 1,800 orders Inspection $ 126,854 1,820 inspection-hours Use Table 1 to answer...

Table 1

Activity Cost Pool Total Cost Total Activity

Assembly $ 942,480 66,000 machine-hours

Processing orders $ 85,050 1,800 orders

Inspection $ 126,854 1,820 inspection-hours

Use Table 1 to answer this question. XYZ Corporation has provided the following data from its activity-based costing system (Table 1). The company makes 430 units of product ABA a year, requiring a total of 690 machine-hours, 40 orders, and 10 inspection-hours per year. The product's direct materials cost is $35.72 per unit and its direct labor cost is $29.46 per unit. According to the activity-based costing system, the average cost of product ABA is closest to:

Select one:

a. $94.11 per unit.

b. $92.49 per unit.

c. $65.18 per unit.

d. none of the given answer.

e. $89.72 per unit.