Purchase Solution

Average cost of product

Not what you're looking for?

Ask Custom Question

Please help answer the following problems. Provide step by step calculations.

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

Activity Cost Pool Total Cost Total Activity
Assembly 498,520 44,000 machine-hours
Processing orders 54,263 1,100 orders
Inspection 77,589 1,110 inspection-hours

Data concerning the company's product L19B appear below:

Annual unit production and sales 430
Annual machine-hours 990
Annual number of orders 70
Annual inspection hours 20
Direct materials cost 37.74 per unit
Direct labor cost 10.45 per unit

According to the activity-based costing system, the average cost of product L19B is closest to:

85.56 per unit
82.31 per unit
48.19 per unit
77.53 per unit

Purchase this Solution

Solution Summary

This provides the steps to compute the average cost of products. Step by step calculations are given in each solution.

Solution Preview

Ravelo Corporation has provided the following data from its activity-based costing system:
First we have to find ...

Purchase this Solution


Free BrainMass Quizzes
Motivation

This tests some key elements of major motivation theories.

Business Processes

This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.

Social Media: Pinterest

This quiz introduces basic concepts of Pinterest social media

Understanding Management

This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.

Managing the Older Worker

This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce