FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Donnati Corporation has provided the following data from its activity-based costing system:
Activity Cost Pool Total Cost Total Activity
Assembly
$
Processing orders $
Inspection
$
415,382
Annual orders
72,695
126,000
Data concerning one of the company's products, Product A43V, appear below:
Selling price per unit
Direct materials cost per unit
Direct labor cost per unit
Annual unit production and sales
Annual machine-hours
Annual inspection-hours
$ 126.40
$ 22.26
$ 46.04
300
410
125
23,900 machine-hours
1,550 orders
1,800 inspection-hours
28
According to the activity-based costing system, the product margin for Product A43V is:
a) 13,221.70
b) 3,208.40
c) 6,580.40
d) 2,481.70
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Transcribed Image Text:Donnati Corporation has provided the following data from its activity-based costing system: Activity Cost Pool Total Cost Total Activity Assembly $ Processing orders $ Inspection $ 415,382 Annual orders 72,695 126,000 Data concerning one of the company's products, Product A43V, appear below: Selling price per unit Direct materials cost per unit Direct labor cost per unit Annual unit production and sales Annual machine-hours Annual inspection-hours $ 126.40 $ 22.26 $ 46.04 300 410 125 23,900 machine-hours 1,550 orders 1,800 inspection-hours 28 According to the activity-based costing system, the product margin for Product A43V is: a) 13,221.70 b) 3,208.40 c) 6,580.40 d) 2,481.70
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