The costs in those activity cost pools appeer below ng$5,800 $15,700 $5,500 Orde

Question

The costs in those activity cost pools appeer below ng$5,800 $15,700 $5,500 Order Filling assigned to products Activity deta appesr below MHs (Machining) Orders (Order Filling) Product Z3 Product X6 1,900 8,100 100 900 Finaly, sales and direct cost dats are combined with Machining and Order Fling coss to determine product marges Sales (total) Direct labor (total) What is the product margin for Product X6 under activiny based costing? Product 23 Product X6 $64,100 $70,600 $28,800 $18,000 $29,100 $30,200 materials (total)$ O $22,400 O $3,572 O $29,700 O $17802 search O Type here to

Explanation / Answer

Calculate product margin X6 :

so answer is b) $3572

Sales 70600 Direct material -18000 Direct labour -30200 Machining (5800*8100/10000) -4698 Order filing (15700*900/1000) -14130 Product margin 3572

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