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Spendlove Corporation makes ten different products. The company has provided the following data from its activity-based

Posted: Sat May 07, 2022 8:00 pm
by answerhappygod
Spendlove Corporation makes ten different products. The company
has provided the following data from its activity-based costing
system for all ten products:
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
$4,616.50
$32,584.00
$5,471.50