Kraska Corporation has provided the following data from its activity-based costing system: Activity Cost Pool Total Cost
Fantastic news! We've Found the answer you've been seeking!
Question:
Kraska Corporation has provided the following data from its activity-based costing system:
Activity Cost Pool Total Cost Total Activity
Assembly $453,000 33,000 machine-hours
Processing orders $33,590 980 orders
Inspection $108,136 1,320 inspection-hours
Data concerning one of the company’s products, Product O11W, appear below:
Selling price per unit $95.0
Direct materials cost per unit $18.1
Direct labor cost per unit $13.0
Annual unit production and sales 400.0
Annual machine-hours 920.0
Annual orders 82.0
Annual inspection-hours 24.0
According to the activity-based costing system, the product margin for product O11W is (round activity rates to 2 decimal places):
A. $3,744.06
B. $1,484.20
C. $8,154.21
D. $5,200.00r
Posted Date: