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Spendlove Corporation makes ten different products. The company has provided the following data from its activity-based costing system for all ten products: Activity Cost Pool

Spendlove Corporation makes ten different products. The company has provided the following data from its activity-based costing system for all ten products:

Activity Cost Pool Total Cost Total Activity

Assembly $1,114,920 57,000 machine-hours

Processing orders $47,016 1,800 orders

Inspection $107,328 1,560 inspection-hours

One of the ten products is product S78N. The company makes and sells 450 units of product S78N a year, requiring a total of 1,120 machine-hours, 40 orders, and 30 inspection-hours per year for product S78N.

Product S78N's direct materials cost is $49.81 per unit and its direct labor cost is $12.34 per unit. The product sells for $128.00 per unit.

According to the activity-based costing system, the product margin for product S78N would be closest to:

$29,632.50

$5,471.50

$4,616.50

$32,584.00

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