Question
Donnati Corporation has provided the following data from its activity-based costing system: Activity Cost PoolTotal CostTotal ActivityAssembly$411,74023,800machine-hoursProcessing orders$70,2301,500ordersInspection$123,7101,780inspection-hours Data concerning one of the company's products,
Donnati Corporation has provided the following data from its activity-based costing system:
Activity Cost PoolTotal CostTotal ActivityAssembly$411,74023,800machine-hoursProcessing orders$70,2301,500ordersInspection$123,7101,780inspection-hours
Data concerning one of the company's products, Product A43V, appear below:
Selling price per unit$126.20Direct materials cost per unit$22.24Direct labor cost per unit$46.01Annual unit production and sales290Annual machine-hours400Annual orders120Annual inspection-hours26
According to the activity-based costing system, the product margin for Product A43V is:
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