A company has provided the following data from its activity-based costing system: Activity Cost Pool Total Cost Assembly Processing orders $70,578.60 Total Activity 66,500 machine-hours 2,370 orders inspection- $1,586,690 Inspection $124,500 1,660 hours The company makes 600 units of product A a year, requiring a total of 2,030 machine- hours, 108 orders, and 33 inspection-hours per year. The product's direct materials cost is $52.59 per unit and its direct labor cost is $19.32 per unit. The product sells for $175.60 per unit.

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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A company has provided the following data from its activity-based costing system:
Activity Cost Pool Total Cost
Total Activity
Assembly
Processing orders $70,578.60
$1,586,690
66,500 machine-hours
2,370 orders
Inspection
$124,500
1,660
inspection-
hours
The company makes 600 units of product A a year, requiring a total of 2,030 machine-
hours, 108 orders, and 33 inspection-hours per year. The product's direct materials cost
is $52.59 per unit and its direct labor cost is $19.32 per unit. The product sells for
$175.60 per unit.
According to the activity-based costing system, the product margin for product A is:
(Round your intermediate calculations to 2 decimal places.)
Multiple Choice
$10,561.96
$8.086.96
$11,303.20
$62.214.00
Transcribed Image Text:A company has provided the following data from its activity-based costing system: Activity Cost Pool Total Cost Total Activity Assembly Processing orders $70,578.60 $1,586,690 66,500 machine-hours 2,370 orders Inspection $124,500 1,660 inspection- hours The company makes 600 units of product A a year, requiring a total of 2,030 machine- hours, 108 orders, and 33 inspection-hours per year. The product's direct materials cost is $52.59 per unit and its direct labor cost is $19.32 per unit. The product sells for $175.60 per unit. According to the activity-based costing system, the product margin for product A is: (Round your intermediate calculations to 2 decimal places.) Multiple Choice $10,561.96 $8.086.96 $11,303.20 $62.214.00
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