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Dobles Corporation has provided the following data from its activity-based costing system:
ACTIVITY COST POOL:
- Assembly
- Processing orders
- Inspection
ESTIMATED OVERHEAD COST
- Assembly: $228,060
- Processing orders: $34,068
- Inspection: $125,560
EXPECTED ACTIVITY
- Assembly: 18000 Machine Hours
- Processing orders: 1200 Orders
- Inspection: 1720 Inspection Hours
The company makes 420 units of product D28K a year, requiring a
total of 460 machine-hours, 80 orders, and 10 inspection-hours per year. The product's direct materials cost is $48.96 per unit, and its direct labor cost is $25.36 per unit.
Use activity-based costing to compute the unit product cost of product D28K.
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