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A company has provided the following data from its activity-based costing system related to fixed manufacturing overhead: Activity cost pool Total cost Practical capacity of activity Assembly $65,000 55,000 machine hours Processing $76,000 2,500 orders Inspection $55,000 2,200 inspection hours The company makes 40 units of Product X a year, requiring a total of 690 machine-hours, 40 orders, and 10 inspection-hours per year. The product's direct materials cost is $45 per unit and its direct labor cost is $35 per unit. In the most recent year, 40,000 total machine hours were actually used for the assembly activity. Under the activity-based costing system, the total cost of "unused capacity" related to the assembly activity for the most recent year is closest to: Group of answer choices $15,000.00 $18,980.34 $16,543.49 $17,727.27 $24,375.00
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A company has provided the following data from its activity-based costing system related to fixed ma...
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