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Bilingsly Limited, a manufacturer of a variety of products, uses an activity-based costing system. Information from its system for the year for all products follows:
Bilingsly Limited, a manufacturer of a variety of products, uses an activity-based costing system. Information from its system for the year for all products follows:
Activity cost pool | Total cost | Total activity | |
Assembly | $584,000 | 24,000 | Machine hours |
Inspection | $341,900 | 9,500 | Inspection hours |
Packaging | $24,300 | 1,200 | Orders |
Bilingsly Limited makes 440 of its product B63 a year, which requires a total of 45 machine hours, 15 inspection hours, and 17 orders. Product B63 requires $43.70 in direct materials per unit and $58.20 in direct labor per unit. Product B63 sells for $245 per unit. What is the profit margin in total for Product B63? (Round all answers to two decimal places.)
Answer Options:
A. $105,719.01 | |
B. | $60,984.91 |
C. | $62.53 |
D. | $27,511.96 |
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