Trauscht Corporation has provided the following data from its activity-based costing system:
The company makes 340 units of product P23F a year, requiring a total of 710 machine-hours, 80 orders, and 40 inspection-hours per year. The product's direct materials cost is $40.05 per unit and its direct labor cost is $14.35 per unit. The product sells for $121.90 per unit.
According to the activity-based costing system, the product margin for product P23F is:
A) $9,223.20
B) $7,853.60
C) $5,401.60
D) $22,950.00

Question

Trauscht Corporation has provided the following data from its activity-based costing system: 
The company makes 340 units of product P23F a year, requiring a total of 710 machine-hours, 80 orders, and 40 inspection-hours per year. The product's direct materials cost is $40.05 per unit and its direct labor cost is $14.35 per unit. The product sells for $121.90 per unit.
According to the activity-based costing system, the product margin for product P23F is:
A) $9,223.20 
B) $7,853.60 
C) $5,401.60 
D) $22,950.00

Quizplus · Accepted Answer

The Answer of Trauscht Corporation has provided the following data from its activity-based costing system: 
The company makes 340 units of product P23F a year, requiring a total of 710 machine-hours, 80 orders, and 40 inspection-hours per year. The product's direct materials cost is $40.05 per unit and its direct labor cost is $14.35 per unit. The product sells for $121.90 per unit.
According to the activity-based costing system, the product margin for product P23F is:
A) $9,223.20 
B) $7,853.60 
C) $5,401.60 
D) $22,950.00

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