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Spendlove Corporation has provided the following data from its activity-based costing system: Activity Cost Pool Total Cost Total Activity Assembly $1,317,576 61,800 machine-hours Processing orders
Spendlove Corporation has provided the following data from its activity-based costing system: |
Activity Cost Pool | Total Cost | Total Activity | |
Assembly | $1,317,576 | 61,800 | machine-hours |
Processing orders | $62,709.20 | 2,110 | orders |
Inspection | $168,315 | 2,290 | inspection-hours |
The company makes 940 units of product S78N a year, requiring a total of 1,970 machine-hours, 120 orders, and 34 inspection-hours per year. The product's direct materials cost is $57.65 per unit and its direct labor cost is $12.48 per unit. The product sells for $128.50 per unit. |
According to the activity-based costing system, the product margin for product S78N is: |
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