Chapter 7 Quiz h Corporation has provided the following data from its activity-b

Question

Chapter 7 Quiz h Corporation has provided the following data from its activity-based costing system: Activity Cost Poo1 Assembly Processing orders Total Activity Total Cost $1,607,760 60,900 machine-hours $ 62,909 2,150 orders inspection Inspection $ 151,200 2,160 hours The company makes 1,020 units of product W26B a year, requiring a total of 2,110 machine-hours, 87 orders, and 32 inspection- hours per year. The product's direct materials cost is $54.49 per unit and its direct labor cost is $17.21 per unit. The product sells for $136.50 per unit. According to the activity-based costing system, the product margin for product W268 is: (Round your intermediate calculations and final answers to 2 decimal places.)

Explanation / Answer

Dear Student Thank you for using Chegg Please find below the answer Statementshowing Computations Activity cost pool Total cost Total Activity Cost per activity Assembly           1,607,760.00          60,900.00                          26.40 Processing orders                 62,909.00            2,150.00                          29.26 Inspection               151,200.00            2,160.00                          70.00           1,821,869.00 Revenue = 1020 * 136.50               139,230.00 Costs: Direct Material cost = 1020 * 54.49                 55,579.80 Direct Labour cost = 1020 * 17.21                 17,554.20 Overheads: Assembly = 2110 * 26.40                 55,704.00 Processing orders = 87*29.26                   2,545.62 Inspection = 32 * 70                   2,240.00 Total cost               133,623.62 Product Margin                   5,606.38

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