Question
Feldpausch Corporation has provided the following data from its activity-based costing system: Activity Cost Pool Total Cost Total Activity Assembly $ 1,598,350 65,000 machine-hours Processing
Feldpausch Corporation has provided the following data from its activity-based costing system:
| Activity Cost Pool | Total Cost | Total Activity | ||||||||
| Assembly | $ | 1,598,350 | 65,000 | machine-hours | ||||||
| Processing orders | $ | 52,753 | 1,840 | orders | ||||||
| Inspection | $ | 136,818 | 1,980 | inspection-hours | ||||||
The company makes 840 units of product W26B a year, requiring a total of 1,910 machine-hours, 43 orders, and 32 inspection-hours per year. The product's direct materials cost is $49.59 per unit and its direct labor cost is $17.67 per unit. The product sells for $134.20 per unit.
According to the activity-based costing system, the product margin for product W26B is:
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Audit And Accounting Guide Employee Benefit Plans
Authors: American Institute Of Certified Public Accountants
1st Edition
0870515756, 978-0870515750
