Pinnacle Corporation has provided the following data from its activity-based costing system: Activity Cost Pool Total Cost
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Question:
Pinnacle Corporation has provided the following data from its activity-based costing system:
Activity Cost Pool | Total Cost | Total Activity | |||
Assembly | $ | 1,405,800 | 71,000 | machine-hours | |
Processing orders | $ | 50,768 | 1,900 | orders | |
Inspection | $ | 135,100 | 1,930 | inspection-hours | |
The company makes 370 units of product S78N a year, requiring a total of 600 machine-hours, 50 orders, and 15 inspection hours per year. The product's direct materials cost is $50.77 per unit and its direct labor cost is $12.82 per unit. The product sells for $121.30 per unit.
According to the activity-based costing system, the product margin for product S78N is:
$8,136.70.
$21,352.70.
$7,086.70.
$8,422.70.
Related Book For
Managerial Accounting
ISBN: 9780073526706
12th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
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