Radakovich Corporation has provided the following data from its activity-based costing system: The company makes 230 units of product F60N a year, requiring a total of 480 machine-hours, 50 orders, and 30 inspection-hours per year.The product's direct materials cost is $12.70 per unit and its direct labor cost is $45.93 per unit.The product sells for $126.60 per unit. According to the activity-based costing system, the product margin for product F60N is:
A)$6, 251.70
B)$4, 490.70
C)$6, 393.70
D)$15, 633.10

Question

Radakovich Corporation has provided the following data from its activity-based costing system:  The company makes 230 units of product F60N a year, requiring a total of 480 machine-hours, 50 orders, and 30 inspection-hours per year.The product's direct materials cost is $12.70 per unit and its direct labor cost is $45.93 per unit.The product sells for $126.60 per unit. According to the activity-based costing system, the product margin for product F60N is:
A)$6, 251.70 
B)$4, 490.70 
C)$6, 393.70 
D)$15, 633.10

Quizplus · Accepted Answer

The activity rates for each activity cost pool are computed as follows:
 11eaa0c8_9568_37d3_9cb2_31fe8772e26e_TB2487_00 The overhead cost charged to Product S78N is:
 11eaa0c8_9568_37d4_9cb2_4366e427f443_TB2487_00 
 11eaa0c8_9568_5ee5_9cb2_f7cf8bd1f20c_TB2487_00

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