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1. According to the activity-based costing system, the product margin for product X is: Shella Company use activity-based costing. The company produces two products: coats
1. According to the activity-based costing system, the product margin for product X is:
Shella Company use activity-based costing. The company produces two products: coats and hats. The annual production and sales volume of coats is 8,000 units and of hats is 6,000 units. There are three activity cost pools with the following expected activities and estimated total costs: Activity Estimated Expected Expected Cost Pool Cost Activity Activity Coats Hats Total Activity 1 P20,000 100 400 500 Activity 2 P37,000 800 200 1,000 Activity 3 P91,200 800 3,000 3,800Ronald Corporation has provided the following data from its activity-based costing system: Activity; Cost Pool Total Cost Total Activity; Assembly............................. P613,250 55,000 machine-hours Processing orders................ P 46,170 1,500 orders inspection P14,110 1,900 inspectionhours Data concerning one of the company's products, Product X, appear below: Selling price per unit P1135\") Direct materials cost per unit P4314 Direct labor cost per unit 1311.62 Annual unit production and sales.................... 360 Annual machine-hours..................................... 1,040 Annual orders 60 Annual inspection-hours.................................. 30 According to the activity-based costing system, the product margin for product X isStep by Step Solution
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