23. Spendlove Corporation has provided the following data from its activity-base
ID: 2422976 • Letter: 2
Question
23. Spendlove Corporation has provided the following data from its activity-based costing system: Total Cost $1,372,578 $63,234.60 Activity Cost Pool Total Activity Assembly 61,800 machine-hours 2,010 orders 2,090 inspection-hours Processing orders Inspection $151,316 The company makes 600 units of product S78N a year, requiring a total of 1,200 machine-hours, 78 orders, and 34 inspection-hours per year. The product's direct materials cost is $49.55 per unit and its direct labor cost is $12.44 per unit. The product sells for $128.70 per unit. According to the activity-based costing system, the product margin for product S78N is: (Round your intermediate calculations to 2 decimal places.) O $10,91240 $10,920.12 O $8,458.52 O $40,026.00 $40,026.00Explanation / Answer
As per Chegg guidelines we answer one question per post $8,458.52 Statement showing computations Activity cost pools TotalCost Total Activity Activity Rate = Cost/Activity Activity reqd by S78N Total Cost for S78N = Activity Rate *Activity Assembly 1,372,578.00 61,800.00 22.21 1,200.00 26,652.00 Processing Orders 63,234.60 2,010.00 31.46 78.00 2,453.88 Inspection 151,316.00 2,090.00 72.40 34.00 2,461.60 126.07 31,567.48 Statement showing computations Particulars Amount Selling price per unit 128.70 Direct Materials Cost per unit 49.55 Direct Labour Cost 12.44 Overhead = 31,567.48/600 52.61 Profit Margin per unit = SP - Costs 14.10 Profit Margin for S78N = 600*14.10 8,458.52
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