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 Answer of 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

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