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

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.

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