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

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

Quizplus · Accepted Answer

The Answer of 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

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