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asap please In its first year of operations a company produced and sold 21,300 units of product at a selling price of 533 per unit
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In its first year of operations a company produced and sold 21,300 units of product at a selling price of 533 per unit and 18,800 units of Product at a selling price of 53 per unit. Additional information relating to the company's only two products is shown below Product Product Total Direct materials $ 442,800 $ 254,300 $ 697,100 Direct labor $ 213,000 110,500 323,500 Manufacturing overhead 614,500 cost of goods sold $ 1,635,100 The company created on activity bosed costing system that allocated its manufacturing overhead costs to four activities as follows: Activity cont Pool and Activity Measure) Machining machine-hours) Setupe (setup hours) Product design (number of products) Other (organization-sustaining costs) Total manufacturing overhead cost Manufacturing Overhead $ 214,800 158,800 121,300 119,600 $ 614,500 Activity Product Product B 96,500 63,800 88 430 1 1 NA NA Total 160,300 518 2 NA The company's ABC implementation team also concluded that $56,500 and $113,000 of the company's advertising expenses could be directly traced to Product A and Product 8, respectively. The remainder of its selling and administrative expenses ($413,000) was organization sustaining in nature. if the company uses a traditional cost system that relles on plontwide overhead allocation based on direct labor dollars, what is the total gross margin for product margin) earned by Product A? (Round your intermediate calculations to 2 decimal places.) Product A and Product B, respectively. The remainder of its selling and administi If the company uses a traditional cost system that relies on plantwide overhead product margin) earned by Product A? (Round your intermediate calculations to Multiple Choice $1,271,100 $1,292,400 O $1.235,900 $1,203,300 Step by Step Solution
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