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:
A) $48.19 per unit
B) $82.31 per unit
C) $85.56 per unit
D) $77.53 per unit