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 YB a year, requiring a total of 2,070 machine-hours, 41 orders, and 3s inspection-hours per year. The product's direct materials cost is $56.46 per unit and its direct labor cost is $22.67 per unit. The product sells for $148.5o per unit. According to the activity-based costing system, the product margin for product YB is (Round your intermediate calculations and final answers to 2 decimal places.) Select one O a $6,340.38 b. $5.450 38 O c $7.230.38 Od $4.560 38

Answer 1

	Total cost		Rate
Assembly	1443140	59000 hours	24.46 hours
Processing orders	80905	2750 orders	29.42 per order
Inspection	145733	1910 inspection hours	76.3 inspection per hour

Sales	148.5 * 890	132165
Direct material	56.46 * 890	50249.4
Direct labour	22.67 * 890	20176.3
Assembly cost	24.46 * 2070 machine hours	50632.2
Processing orders cost	29.42 * 41 orders	1206.22
Inspection cost	76.3 * 35 inspection hours	2670.5
TOTAL COST		124934.62
Profit Margin		$7230.38

Correct option = (c) $7230.38