Feldpausch Corporation has provided the following data from its activity-based costing system: The company makes 470 units of product W26B a year, requiring a total of 660 machine-hours, 50 orders, and 40 inspection-hours per year. The product's direct materials cost is $40.30 per unit and its direct labor cost is $42.22 per unit. The product sells for $118.00 per unit.
According to the activity-based costing system, the product margin for product W26B is:
A) $6,444.70
B) $4,679.20
C) $3,384.70
D) $16,675.60

Question

Feldpausch Corporation has provided the following data from its activity-based costing system:  The company makes 470 units of product W26B a year, requiring a total of 660 machine-hours, 50 orders, and 40 inspection-hours per year. The product's direct materials cost is $40.30 per unit and its direct labor cost is $42.22 per unit. The product sells for $118.00 per unit.
According to the activity-based costing system, the product margin for product W26B is:
A) $6,444.70 
B) $4,679.20 
C) $3,384.70 
D) $16,675.60

Quizplus · Accepted Answer

The activity rates for each activity cost pool are computed as follows:
 11eacbfc_c667_cd18_8ffe_ada881ef1fdc_TB7552_00 The overhead cost charged to Product W26B is:
 11eacbfc_c667_f429_8ffe_19aaa513cf1a_TB7552_00 11eacbfc_c667_f42a_8ffe_0391907e73c8_TB7552_00

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