Question
Spendlove Corporation has provided the following data from its activity-based costing system: Activity Cost Pool Total Cost Total Activity Assembly $1,341,990 66,600 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 | $1,341,990 | 66,600 | machine-hours |
| Processing orders | $47,847.80 | 1,820 | orders |
| Inspection | $147,070 | 1,910 | inspection-hours |
| The company makes 1,080 units of product S78N a year, requiring a total of 2,010 machine-hours, 131 orders, and 35 inspection-hours per year. The product's direct materials cost is $58.32 per unit and its direct labor cost is $17.36 per unit. The product sells for $129.50 per unit. |
| According to the activity-based costing system, the product margin for product S78N is: (Round your intermediate calculations to 2 decimal places.) |
| $14,929.10 | |
| $11,485.11 | |
| $58,125.60 | |
| $14,180.11 |
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Audit Accountability And Government
Authors: Fidelma White, Kathryn Hollingsworth
1st Edition
0198262329, 978-0198262329
