Answered step by step
Verified Expert Solution
Link Copied!

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

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Financial Accounting Lawrence S C Good Condition ISBN 08512

Authors: S.C. Lawrence

1st Edition

9780851215099

More Books

Students also viewed these Accounting questions

Question

Organizing Your Speech Points

Answered: 1 week ago