Question

COVID 19 Co has provided the following data from its activity-based costing system: Activity Cost Pool Total Cost Total Activity Assembly $1,443.140 59,000 machine-hours Processing orders $ 80.905 2,750 orders Inspection $145,733 1,910 inspection-hours The company makes 890 units of product YBa year, requiring a total of 2,070 machine-hours, 41 orders, and 35 inspection-hours per year. The product's direct materials cost $56 46 per unit and its direct labor cost is $22.67 per unit. The product sells for $148.50 per unit According to the activity-based costing system, the product margin for product is (Round your intermediate calculations and final answers to 2 decimal places.) Select one: a. $5.450 38 b. $4.560.38 O C $6,340.38 O d.$7.230.38

Answer 1

Answer - d - $7230.38

Working -

Activity Based Costing system
Total Activity Assembly	1443140		Machine Hours	59000
Processing orders	80905		Orders	2750
Inspection	145733		Inspection Hours	1910
For 890 units
Total Machine Hours	2070
orders	41
Inspection Hours	35
Per Unit	$	Calculation
Selling price	148.5
Direct material	56.46
Direct labor	22.67
Overhead :
Assembly	56.89	(1443140/59000*2070)/890 units
Processing orders	1.36	(80905/2750*41)/890 units
Inspection	3.00	(145733/1910*35)/890 units
Margin	8.12	Selling price - Costs
Margin for 890 units	7230.38	8.12 * 890 units