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Bassanova Company has two products: A and B. The annual production and sales level of Product A is 18,000 units. The annual production and sales
Bassanova Company has two products: A and B. The annual production and sales level of Product A is 18,000 units. The annual production and sales level of Product B is 32,000. The company uses activity-based costing and has prepared the following analysis showing the estimated total cost and expected activity for each of its three activity cost pools: Expected Activity Activity Cost Pool Estimaied cost Activity ProductA Product B TotalActivity Cutting $ 80,000 200 800 1,000 Sanding 360,000 600 5,400 6,000 Painting 60,000 1000 500 1,500 The following information is also available: (In Dollars) A B Sales price per unit $100.00 150.00 Direct material per unit 20.00 30.00 Direct labor per unit 10.00 15.00 Compute the profit margin for Products A and B using activity-based costing
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