Spendlove Corporation has provided the following data from its activity-based costing system: The company makes 430 units of product S78N a year,requiring a total of 1,120 machine-hours,40 orders,and 30 inspection-hours per year.The product's direct materials cost is $49.81 per unit and its direct labor cost is $12.34 per unit.The product sells for $129.90 per unit.According to the activity-based costing system,the product margin for product S78N is:
A)$4,116.50
B)$29,132.50
C)$6,180.50
D)$5,161.30
E)$4,981.00

Question

Spendlove Corporation has provided the following data from its activity-based costing system:  The company makes 430 units of product S78N a year,requiring a total of 1,120 machine-hours,40 orders,and 30 inspection-hours per year.The product's direct materials cost is $49.81 per unit and its direct labor cost is $12.34 per unit.The product sells for $129.90 per unit.According to the activity-based costing system,the product margin for product S78N is:
A)$4,116.50 
B)$29,132.50 
C)$6,180.50 
D)$5,161.30 
E)$4,981.00

Quizplus · Accepted Answer

The activity rates for each activity cost pool are computed as follows: 11ea7277_ef19_78d3_9608_a3e4b13c9a52_TB2411_00 The overhead cost charged to Product S78N is: 11ea7277_ef19_78d4_9608_d50a5568f4c8_TB2411_00 11ea7277_ef19_9fe5_9608_171d63f80dde_TB2411_00

Spendlove Corporation Has Provided the Following Data from Its Activity-Based