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Stroth Corporation uses activity-based costing to compute product margins. Stroth Corporation manufactures and sells only two
$2.958 --$1,000 $9.500 $6,058
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Answer #1

1) Activity rate machining = 54000/10000 = 0.54 per machine hour

Activity rate order filling = 2500/1000 = 2.5 per order

Calculate product margin

Sales 50000
Cost 37400
Machining (9800*.54) 5292
Order filling 1250
Product margin 6058

So answer is d) $6058

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