Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Donnati Corporation has provided the following data from its activity-based costing system: Activity Cost Pool Total Cost Total Activity Assembly $ 404,504 23,600 machine-hours Processing
Donnati Corporation has provided the following data from its activity-based costing system:
Activity Cost Pool | Total Cost | Total Activity | |||
Assembly | $ | 404,504 | 23,600 | machine-hours | |
Processing orders | $ | 65,324 | 1,400 | orders | |
Inspection | $ | 119,190 | 1,740 | inspection-hours | |
Data concerning one of the company's products, Product A43V, appear below:
Selling price per unit | $ | 125.80 | |
Direct materials cost per unit | $ | 22.20 | |
Direct labor cost per unit | $ | 45.95 | |
Annual unit production and sales | 270 | ||
Annual machine-hours | 380 | ||
Annual orders | 110 | ||
Annual inspection-hours | 22 | ||
According to the activity-based costing system, the product margin for Product A43V is:
Multiple Choice
A $3,119.30.
B $6,397.40.
C $12,854.10.
D $2,412.70.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started