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Question

e https://mailgoogle.com/ma Vuo/elnbox/161e4c506e42362?proector=1&messagep; aSearch. 4) Bilingsly Limited, a manufacturer of a variety of products, uses an activity-based costing system. Information from its system for the year for all products follows S384 S341,700 $24.480 23,000 machine-hours 8.500 inspection.hours 1600 orders Packaging Bilingsly Limited makes 450 of its product B63 per customer orders, which requires a total of 53 machine hours, 13 inspection hours, and 19 orders. Product B63 requires $45.70 in direct materials per unit and $58.20 in direct labor per unit. Product B63 sells for $265 per unit. If all 450 units are sold, what is the product (gross) margin in total for Product B63? (7 points) Scanned by CamScanner ng daia is related to sales and production of the Tarkio Corporation for last year. ling price per unit facturing cost per unit

Explanation / Answer

STATEMENT SHOWING ACTIVITY RATE OF ACTIVITY POOL Activity Total Expected Activity ACTIVITY COST POOL Measures Overheads Activity Rate Assembly MH 584,200 23,000 25 per MH Inspection Inspection Hours 341,700 8,500 40 Per Inspection hour packaging Orders 24,480 1,600 15 Per order Overheads assigned to B-63 and OH cost per unit Overheads assigned: Assembly (53 MH @25) 1325 Inspection (13 hours @ 40) 520 packaging (19 orders @15) 285 Total overheads assigned 2130 Total Gross profit earned on B63: Sales revenue (450 units@265) 119250 Less: Cost Material (450 units @ 45.70) 20565 Labour (450 units @ 58.20) 26190 Overheads assigned 2130 Gross margin 70365

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