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Donnati Corporation has provided the following data from its activity-based costing system: Activity Cost Pool Total Cost Total Activity Assembly $383,180 23,000 machine-hours Processing orders
Donnati Corporation has provided the following data from its activity-based costing system:
Activity Cost Pool | Total Cost | Total Activity | |
Assembly | $383,180 | 23,000 | machine-hours |
Processing orders | $50,798 | 1,100 | orders |
Inspection | $106,110 | 1,620 | inspection-hours |
Data concerning one of the company's products, Product A43V, appear below:
Selling price per unit | $124.60 |
Direct materials cost per unit | $22.08 |
Direct labor cost per unit | $45.77 |
Annual unit production and sales | 210 |
Annual machine-hours | 320 |
Annual orders | 80 |
Annual inspection-hours | 10 |
According to the activity-based costing system, the product margin for product A43V is:
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