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Feldpausch Corporation has provided the following data from its activity-based costing system: Activity Cost Pool Total...

Feldpausch Corporation has provided the following data from its activity-based costing system: Activity Cost Pool Total Cost Total Activity Assembly $ 1,643,324 62,200 machine-hours Processing orders $ 57,859 1,970 orders Inspection $ 106,860 1,560 inspection-hours The company makes 500 units of product W26B a year, requiring a total of 1,770 machine-hours, 103 orders, and 39 inspection-hours per year. The product's direct materials cost is $58.42 per unit and its direct labor cost is $14.59 per unit. The product sells for $185.50 per unit. According to the activity-based costing system, the product margin for product W26B is: (Round your intermediate calculations and final answers to 2 decimal places.)

  • $6,456.49

  • $56,245.00

  • $3,784.99

  • $6,810.10

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Answer #1

Calculate product margin

Assembly (1643324/62200*1770) 46763.40
Processing orders (57859/1970*103) 3025.12
Inspection (106860/1560*39) 2671.50
Direct material 29210
Direct labor 7295
Total Cost 88965.02
Sales (185.50*500) 92750
Product margin 3784.99

So answer is c) $3784.99

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