Spend low Corporation has provided the following data from its activity-based co

ID: 2477357 • Letter: S

Question

Spend low Corporation has provided the following data from its activity-based costing system: The company makes 1,100 units of products $78N a year, requiring a total of 1,200 machine-hours, 131 orders, and 31 inspection-hours per year. The products direct materials cost is$50,89 per unit and its direct labor cost is %20,56 per unit. The product sells for $113,30 per unit. According to the activity-based costing system, the product margin for product $78N is: (Round your intermediate calculations to 2 decimal places.) $46,035.00 $17,430.05 %18,492.50 $15,027.55

Explanation / Answer

Correct Answer is “$15,027.55”

Calculation and working is given as follows:

Particulars

Calculation

USD

Sale Value

1,100*113.30

$124,630.00

Total Cost:

Direct Material Cost

1,100*50.89

$55,979.00

Direct Labor Cost

1,100*20.56

$22,616.00

Assembly Expenses

1,282,140*1,200/61,200

$25,140.00

Processing Expenses

53,958*131/2,040

$3,464.95

Inspection Cost

181,350*31/2,340

$2,402.50

Total Cost

$109,602.45

Margin (Sale - Total Cost)

$15,027.55