Mirabile Corporation uses activity-based costing to compute product margins. Overhead costs have already been allocated to the company's three activity cost pools--Processing. Supervising, and Other. The costs in those activity cost pools appear below: Processing Supervising Other $ 5,520 $ 34,200 $ 12,000 Processing costs are assigned to products using machine-hours (MHs) and Supervising costs are assigned to products using the number of batches. The costs in the Other activity cost pool are not assigned to products. Activity data appear below: Product Me Product M5 Total Batches MHs (Processing) (Supervising) 750 750 1,500 10,925 575 11,500 Finally, sales and direct cost data are combined with Processing and Supervising costs to determine product margins. Product Me Sales (total) $ 85,500 Direct materials (total) $ 30,100 Direct labor (total) $ 29,400 What is the product margin for Product M5 under activity-based costing? Product M5 $ 97,900 $ 33,000 $ 43,300
Mirabile Corporation uses activity-based costing to compute product margins. Overhead costs have already been allocated to the company's three activity cost pools--Processing. Supervising, and Other. The costs in those activity cost pools appear below: Processing Supervising Other $ 5,520 $ 34,200 $ 12,000 Processing costs are assigned to products using machine-hours (MHs) and Supervising costs are assigned to products using the number of batches. The costs in the Other activity cost pool are not assigned to products. Activity data appear below: Product Me Product M5 Total Batches MHs (Processing) (Supervising) 750 750 1,500 10,925 575 11,500 Finally, sales and direct cost data are combined with Processing and Supervising costs to determine product margins. Product Me Sales (total) $ 85,500 Direct materials (total) $ 30,100 Direct labor (total) $ 29,400 What is the product margin for Product M5 under activity-based costing? Product M5 $ 97,900 $ 33,000 $ 43,300
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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