Assembling unit Processing orders Supprting customers Others Manufacturing overhead 50% 35% 5% 10% Selling and administrative overhead 10% 45% 25% 20% Total activity 2 000 160 100 Units Orders Customers Manufacturing overhead 500 000 Selling and administrative overhead 300 000 800 000 Customers 2 customer Orders 8 orders Number of filing cabinets 90 units Selling price 700 Direct materials 200 Direct labour 70 Determine the product margin under Activity based costing Hide entire questioncaret Answer & Explanation Solved by AI To determine the product margin under Activity-Based Costing (ABC),Manufacturing Overhead: Assembling units: 50% of $500,000 = $250,000 Processing orders: 35% of $500,000 = $175,000 Supporting customers: 5% of $500,000 = $25,000 Others: 10% of $500,000 = $50,000 Selling and Administrative Overhead: Assembling units: 10% of $300,000 = $30,000 Processing orders: 45% of $300,000 = $135,000 Supporting customers: 25% of $300,000 = $75,000 Others: 20% of $300,000 = $60,000 Allocate the Overhead Costs to the Product Based on Its Activity Usage: Manufacturing Overhead: Assembling units: $250,000 / 2,000 units = $125 per unit Processing orders: $175,000 / 160 orders = $1,093.75 per order Supporting customers: $25,000 / 100 customers = $250 per customer Others: $50,000 / 2,000 units = $25 per