5 in its first year of operations a company produced and sold 70,800 units of Product...

 

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5 in its first year of operations a company produced and sold 70,800 units of Product A at a selling price of $28 per unit and 18,300 units of Product B at a selling price of $48 per unit. Additional information relating to the company's only two products is shown below: Direct materials Direct labor Manufacturing overhead Cost of goods sold Product A $ 440,300 $ 208,000 Product B $ 253,300 $ 108,000 Activity Cost Pool (and Activity Measure) Machining (machine-hours) Setups (setup hours) Product design (number of products) Other (organization-sustaining costs) Total manufacturing overhead cost The company created an activity-based costing system that allocated its manufacturing overhead costs to four activities as follows: Activity Product B 63,300 380 1 NA Manufacturing Overhead Total $ 693,600 316,000 612,000 $ 1,621,600 $ 214,300 158, 300 120,800 118,600 $ 612,000 Product A 94,000 83 1 NA Total 157,300 463 2 NA The company's ABC implementation team also concluded that $54,000 and $108,000 of the company's advertising expenses could be directly traced to Product A and Product B, respectively. The remainder of its selling and administrative expenses ($408.000) was organization-sustaining in nature. if the company uses a traditional cost system that relies on plantwide overhead allocation based on direct labor dollars, what is the total gross margin (or product margin) earned by Product A? Note: Round your Intermediate calculations to 2 decimal places. 5 in its first year of operations a company produced and sold 70,800 units of Product A at a selling price of $28 per unit and 18,300 units of Product B at a selling price of $48 per unit. Additional information relating to the company's only two products is shown below: Direct materials Direct labor Manufacturing overhead Cost of goods sold Product A $ 440,300 $ 208,000 Product B $ 253,300 $ 108,000 Activity Cost Pool (and Activity Measure) Machining (machine-hours) Setups (setup hours) Product design (number of products) Other (organization-sustaining costs) Total manufacturing overhead cost The company created an activity-based costing system that allocated its manufacturing overhead costs to four activities as follows: Activity Product B 63,300 380 1 NA Manufacturing Overhead Total $ 693,600 316,000 612,000 $ 1,621,600 $ 214,300 158, 300 120,800 118,600 $ 612,000 Product A 94,000 83 1 NA Total 157,300 463 2 NA The company's ABC implementation team also concluded that $54,000 and $108,000 of the company's advertising expenses could be directly traced to Product A and Product B, respectively. The remainder of its selling and administrative expenses ($408.000) was organization-sustaining in nature. if the company uses a traditional cost system that relies on plantwide overhead allocation based on direct labor dollars, what is the total gross margin (or product margin) earned by Product A? Note: Round your Intermediate calculations to 2 decimal places.

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Plantwide Overhead Allocation based on Direct Labor Dollars Total Direct Labor Dollars 208000 108000 316000 Palnt Wide Overhead Rate Total OverheadsTotal Direct Labor Dollars C612000316000 194 Per Direct Labor Dollar ... View the full answer