1) Utilizing the activity-based costing system information provided below, select the correct product margin.

Activity Cost Pool	Total Cost	Total Activity
Assembly	$900,000	6,000	machine-hours
Processing orders	$400,000	800	orders
Inspection	$250,000	250	inspection-hours

The company makes 2,000 units of Product XYZ a year, requiring a total of 500 machine-hours, 12 orders, and 20 inspection-hours per year. The product's direct materials cost is $150.00 per unit and its direct labor cost is $70.00 per unit. The product sells for $300.00 per unit.

	A.	$158,200
	B.	$30,833
	C.	$159,225
	D.	$59,000

2) Maxwell Corporation manufactures toy building sets. For the month of May, Maxwell sold 400,000 sets. Financial information relating to the building sets is shown below:

Selling price	$50	per unit
Cost of goods sold (all variable)	$24	per unit
Variable selling expense	$12	per unit
Total fixed selling expense	$400,000
Variable administrative expense	$8	per unit
Total fixed administrative expense	$600,000

Gross margin for May is .

Contribution margin for May is .

You must enter your answer in the following format: $x,xxx