3 chapt 4-5; 16/17 Wadsworth Industries manufactures small appliances and uses an activity-based costing system. Information from its system for the year for all products
3 chapt 4-5; 16/17
Wadsworth Industries manufactures small appliances and uses an activity-based
costing system. Information from its system for the year for all products follows:
Activity cost pool Total Cost Total Activity
Assembly 460,000 23,000 machine hours
Inspection 297,500 8,500 inspection hours
Packaging 19,200 1,600 orders
Wadsworth makes 775 of its stand mixers a year, which requires a total of 25 machine hours, 10 inspection hours, and 12 orders. The stand mixer requires $15.00 in direct materials per unit and $11.50 in direct labor per unit. The stand mixer sells for $120 per unit. What is the profit margin in total for the stand mixer?
A.
$26.50
B.
$20,537.50
C.
$71,468.50
D.
$91,979.50
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