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3 years ago

Paparo Corporation has provided the following data from its activity-based costing system:

Business

1 answer:

Simora [160]3 years ago

8 0

Answer:

The average cost of product Q79Y is closest to = $ 133.30

Explanation:

Paparo Corporation

We find the total cost of material , labor and FOH using activity based costing.

Activity based Costs= Activity Cost/ Total Cost Pool * No of Cost Pools

Direct materials cost $ 46.00 per unit * 450= $ 20700

Direct labor cost $ 41.07 per unit*450= $ 18481.5

Assembly Costs =$ 831,300 /51,000 machine-hours* 1,010 hours =$ 16463

Processing orders Costs= $ 49,010 /1,300 orders *55 orders = $2073.5

Inspection Costs= $ 98,905 /1,310 inspection-hours* 30 hours = $2265

Total Manufacturing Costs for 450 units = $ 59983

The average cost of product Q79Y is closest to = $ 59983/450=$ 133.29=

$ 133.30

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