Question: Kraska Corporation has provided the following data from its activity-based costing system: Activity Cost Pool Total Cost Total Activity Assembly $460,000 39,000 machine-hours Processing orders

Kraska Corporation has provided the following data from its activity-based costing system: Activity Cost Pool Total Cost Total Activity Assembly $460,000 39,000 machine-hours Processing orders $33,100 960 orders Inspection $107,712 1,300 inspection-hours Data concerning one of the companys products, Product O11W, appear below: Selling price per unit $96.0 Direct materials cost per unit $17.6 Direct labor cost per unit $13.0 Annual unit production and sales 320.0 Annual machine-hours 890.0 Annual orders 87.0 Annual inspection-hours 23.0 According to the activity-based costing system, the product margin for product O11W is (round activity rates to 2 decimal places): 1. 1,531.20 2. 7,905.05 3. 5,525.20 4. 4,160.00

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