Answer:
$142.10
Explanation:
The computation of average cost of product Q79Y is shown below:-
Activity cost <u> Total cost Total activity Activity Rate</u>
<u>pool</u>
Assembly $775,100 46,000 $16.85
Processing
orders $57,375 1,500 $38.25
Inspection $108,772 1,420 $76.6
Average cost
Direct Material Cost $41.00
Direct labor Cost $41.29
Total Direct Cost $37,031
( Material Cost + Labor Cost ) × Number of Units
Add :Assembly Cost $18,872
(1,120 Hours × $16.85)
Add :Processing Order Cost $4,208
(110 Orders × $ 38.25)
Add :Inspection Cost $3,830
(50 Hours × $ 76.6)
Total Cost $63,941
Average Cost = Total Cost ÷ Annual Units
= $63,941 ÷ 450
= $142.10
