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A company uses activity-based costing. The company makes two products: A and B. The annual production and sales of A is 100 units and of
A company uses activity-based costing. The company makes two products: A and B. The annual production and sales of A is 100 units and of B is 500 units. The company has prepared the following partially completed Product Cost Report. A B Total Sales $70,000 $30,000 $100,000 Direct materials 28,695 12,631 41,326 6,238 2,789 9,027 Direct labor Overhead allocated to products Direct period cost 28,209 18,432 46,641 3,000 2,500 3,500 The product margin per unit for Product B is: O $38.58/unit O $(12.70)/unit. O $17.70)/unit. O $132.70/unit
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