Drewniak Corporation Has Provided the Following Data from Its Activity-Based

Multiple Choice

Drewniak Corporation has provided the following data from its activity-based costing system: The company makes 430 units of product O37W 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 O37W is closest to:

A) $94.11 per unit
B) $89.72 per unit
C) $65.18 per unit
D) $92.49 per unit