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In its first year of operations a company produced and sold 7 0 , 0 0 0 units of Product A at a selling price

In its first year of operations a company produced and sold 70,000 units of Product A at a selling price of $20 per unit and 17,500 units of Product B at a selling price of $40 per unit Total manufacturing overhead cost
ne company's ABC implementation team also concluded that $31,500 and $118,500 of the company's advertising expenses could be directly traced to Product A and Prod
spectively. The remainder of its selling and administrative expenses ($400,000) was organization-sustaining in nature.
he company's activity-based costing system would report a product margin for Product A of: (Do not round your intermediate calculations.)
Multiple Choice
$514,700
$564,700
$544,700
$533,700
Additional information relating to the company's only two products is shown below:
The company created an activity-based costing system that allocated its manufacturing overhead costs to four activities as follows:
The company's ABC implementation team also concluded that $31,500 and $118,500 of the company's advertising expenses could be directly traced to Product A and Product B,
respectively. The remainder of its selling and administrative expenses ($400,000) was organization-sustaining in nature.
The company's activity-based costing system would report a product margin for Product A of: (Do not round your intermediate calculations.)
Multiple Choice
$514,700
$564,700
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