Question
Pinnocle Corporation has provided the following data from its activity-based costing system: Activity Cost Pool Total Cost Total Activity Assembly $ 1,405,800 71,000 machine-hours Processing
Pinnocle Corporation has provided the following data from its activity-based costing system:
| Activity Cost Pool | Total Cost | Total Activity | |||
| Assembly | $ | 1,405,800 | 71,000 | machine-hours | |
| Processing orders | $ | 50,768 | 1,900 | orders | |
| Inspection | $ | 135,100 | 1,930 | inspection-hours | |
The company makes 370 units of product S78N a year, requiring a total of 600 machine-hours, 50 orders, and 15 inspection-hours per year. The product's direct materials cost is $50.77 per unit and its direct labor cost is $12.82 per unit. The product sells for $121.30 per unit.
According to the activity-based costing system, the product margin for product S78N is:
$8,136.70.
$21,352.70.
$7,086.70.
$8,422.70.
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
Advanced Financial Accounting Lawrence S C Good Condition ISBN 08512
Authors: S.C. Lawrence
1st Edition
9780851215099
