Question
Quantum Corporation has provided the following data from its activity-based costing system: Activity Budgeted Costs Budgeted Activity Usage Assembly $ 1,182,950 59,000 machine hours Processing
Quantum Corporation has provided the following data from its activity-based costing system:
| Activity | Budgeted Costs | Budgeted Activity Usage | |
|---|---|---|---|
| Assembly | $ 1,182,950 | 59,000 | machine hours |
| Processing orders | $ 52,440 | 2,000 | orders |
| Inspection | $ 115,868 | 1,660 | inspection hours |
The company makes 580 units of product R32E, using a total of 1,220 machine-hours, 90 orders, and 80 inspection-hours per year. The product's direct materials cost is $49.91 per unit and its direct labor cost is $12.44 per unit. The product sells for $130.00 per unit. Using activity-based costing, the gross profit per unit for product R32E is:
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Comprehensive Assurance & Systems Tool An Integrated Practice Set
Authors: Laura R Ingraham, J Greg Jenkins
3rd Edition
0133251969, 9780133251968
