Question
Activity Cost Pool Assembly Processing orders Inspection Table 2 Total Cost Total Activity $ 1,114,920 $ 47,016 1,800 orders $ 107,328 57,000 machine-hours 1,560
Activity Cost Pool Assembly Processing orders Inspection Table 2 Total Cost Total Activity $ 1,114,920 $ 47,016 1,800 orders $ 107,328 57,000 machine-hours 1,560 inspection-hours Use Table 2 to answer this question. XYZ Corporation has provided the following data from its activity-based costing system (Table 2). The company makes 430 units of product ABA a year, requiring a total of 1,120 machine-hours, 40 orders, and 30 inspection-hours per year. The product's direct materials cost is $49.81 per unit and its direct labor cost is $12.34 per unit. The product sells for $130 per unit. According to the activity-based costing system, the product margin for product ABA is: Select one: a. $4,159.50. b. $4,290.10. c. $3,815.50. d. none of the given answer. e. $4,116.50.
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