Question: Feldpausch Corporation has provided the following data from its activity-based costing system: Activity Cost Pool Total Cost Total Activity Assembly $ 1,614,810 57,000 machine-hours Processing

Feldpausch Corporation has provided the following data from its activity-based costing system:

Activity Cost Pool Total Cost Total Activity
Assembly $ 1,614,810 57,000 machine-hours
Processing orders $ 79,129 2,760 orders
Inspection $ 173,264 2,210 inspection-hours

The company makes 700 units of product W26B a year, requiring a total of 1,800 machine-hours, 50 orders, and 39 inspection-hours per year. The product's direct materials cost is $49.34 per unit and its direct labor cost is $20.87 per unit. The product sells for $169.30 per unit.

According to the activity-based costing system, the product margin for product W26B is:

Multiple Choice

  • $69,363.00

  • $13,877.90

  • $16,935.50

  • $15,311.40

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!