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A company budgeted the following overhead and cost pools for the upcoming year: Cost Pool Total overhead costs Cost driver budgeted cost drive Material Handling
A company budgeted the following overhead and cost pools for the upcoming year: | ||||||||
Cost Pool | Total overhead costs | Cost driver | budgeted cost drive | |||||
Material Handling | $ 400,000 | Pounds of material | 10,000 | |||||
Repairs and maintenance | $ 4,000 | number of machine hours | 20,000 | |||||
Inspections | $ 200,000 | number of inspections | 100 | |||||
During the year, Job AX4 for 20 units was finished and required the following: | ||||||||
100 pounds of material | ||||||||
300 hours of machine hours | ||||||||
10 inspections | ||||||||
Each unit sold for $2,000. the material cost was $20 per unit, and the labor cost was $80 per unity. | ||||||||
Using activity-based costing, what is Job AX4's porfit margin? | ||||||||
39.95% | ||||||||
34.35% | ||||||||
34.85% | ||||||||
38.60% | ||||||||
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