Spendlove Corporation makes ten different products. The company has provided the following data from its activity-based
Posted: Sat May 07, 2022 7:55 pm
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
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