Question
Spendlove Corporation has provided the following data from its activity-based costing system: Activity Cost Pool Total Cost Total Activity Assembly $1,495,676 58,700 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 | $1,495,676 | 58,700 | machine-hours |
| Processing orders | $53,658.00 | 1,800 | orders |
| Inspection | $147,420 | 2,100 | inspection-hours |
The company makes 770 units of product S78N a year, requiring a total of 1,800 machine-hours, 48 orders, and 35 inspection-hours per year. The product's direct materials cost is $51.46 per unit and its direct labor cost is $13.35 per unit. The product sells for $135.40 per unit. |
According to the activity-based costing system, the product margin for product S78N is: (Round your intermediate calculations to 2 decimal places.) |
| $7,059.42 | |
| $4,602.42 | |
| $54,354.30 | |
| $6,033.30 |
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Custom Edition For University Of Central Florida From Managerial Accounting
Authors: Karen Wilken Braun, Wendy Tietz
3rd Edition
1269451839, 978-1269451833
