Wadsworth Industries manufactures small appliances and uses an activity-based costing system. Information from its system for the year for all products follows: Wadsworth makes 775 of its stand mixers a year, which requires a total of 25 machine hours, 10 inspection hours, and 12 orders. The stand mixer requires $15.00 in direct materials per unit and $11.50 in direct labor per unit. The stand mixer sells for $120 per unit. What is the product margin in total for the stand mixer?
A)$91,979.50
B)$26.50
C)$20,537.50
D)$71,468.50

Question

Wadsworth Industries manufactures small appliances and uses an activity-based costing system. Information from its system for the year for all products follows:  Wadsworth makes 775 of its stand mixers a year, which requires a total of 25 machine hours, 10 inspection hours, and 12 orders. The stand mixer requires $15.00 in direct materials per unit and $11.50 in direct labor per unit. The stand mixer sells for $120 per unit. What is the product margin in total for the stand mixer?
A)$91,979.50 
B)$26.50 
C)$20,537.50 
D)$71,468.50

Quizplus · Accepted Answer

The Answer of Wadsworth Industries manufactures small appliances and uses an activity-based costing system. Information from its system for the year for all products follows:  Wadsworth makes 775 of its stand mixers a year, which requires a total of 25 machine hours, 10 inspection hours, and 12 orders. The stand mixer requires $15.00 in direct materials per unit and $11.50 in direct labor per unit. The stand mixer sells for $120 per unit. What is the product margin in total for the stand mixer?
A)$91,979.50 
B)$26.50 
C)$20,537.50 
D)$71,468.50

Wadsworth Industries Manufactures Small Appliances and Uses an Activity-Based Costing