Answer:
A.
$95.34 per unit
Explanation:
activity cost pool total cost(a) total activity(b) activity rate
assembly $228060 180000 hours $12.67
processing oders $34068 1200 orders $28.39
inspection $125560 1720 hours $73.00
Cost per activity is obtained by dividing total cost for each activity pool with its respective total activity. Cost per activity is helpful to identify the total cost allocated to each activity.
particulars expected activity per activity rate total cost
assembly 460 hours $12.67 $5828.20
processing orders 80 orders $28.39 $2271.20
inspection 10 hours $73.00 $730.00
manufacturing overhead $8829.40
Manufacturing overhead is the other costs that are neither direct material cost and nor direct labor cost. Here we add the total cost incurred in each cost pool to arrive at manufacturing overhead of $8,829.40. The manufacturing overhead incurred is allocated to each cost pool as per the activity and per activity rate.
manufacturing overhead per unit = manufacturing overhead/total units produced
= $8829.40/420
= $21.02
product cost per unit = direct material per unit + direct labor per unit + manufacturing overhead cost per unit
= $48.96 + $25.36 + $21.02
= $95.34
Therefore, the unit product cost of product D28K is closest to $95.34
