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Assume a company produces and sells only two products 14,000 units of Product A and 6,000 units of Product B. The selling prices are $69
Assume a company produces and sells only two products 14,000 units of Product A and 6,000 units of Product B. The selling prices are $69 per unit for Product A and $96 per unit for Product B. Product A's direct materials and direct labor costs per unit are $33 and $12, respectively. Product B's direct materials and direct labor costs per unit are $34 and \$15, respectively. The company uses a plantwide overhead rate based on direct labor dollars. it is considering implementing an activity based costing (ABC) system that allocates all of its manufacturing overhead to three cost pools. The following additionat information is available for the company as a whole and for Products A and B : Using the company's plantwide approsch, the product margin for Product A is closest to (Round your intermediate calculations to 2 decimal places.)
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