Use Table 2 to answer this question. XYZ Corporation has provided the following data from its activity-based costing system (Table 2). The company makes 430 units of product ABA a year, requiring a total of 1,120 machine-hours, 40 orders, and 30 inspection-hours per year. The product's direct materials cost is $49.81 per unit and its direct labor cost is $12.34 per unit. The product sells for $130 per unit. According to the activity-based costing system, the product margin for product ABA is: Select one: Oa$4.290.10. Ob. $4.159.50. Oc S4 116.50. Od $3.815.50.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Table 2
Activity Cost Pool
Assembly
Processing orders
Inspection
Total Activity
57,000 machine-hours
Total Cost
$ 1,114,920
47,016
107,328
1,800 orders
1,560 inspection-hours
Transcribed Image Text:Table 2 Activity Cost Pool Assembly Processing orders Inspection Total Activity 57,000 machine-hours Total Cost $ 1,114,920 47,016 107,328 1,800 orders 1,560 inspection-hours
Use Table 2 to answer this question. XYZ Corporation has provided the following data from its activity-based costing system (Table 2). The company makes 430 units of product ABA a year, requiring a total of 1,120
machine-hours, 40 orders, and 30 inspection-hours per year. The product's direct materials cost is $49.81 per unit and its direct labor cost is $12.34 per unit. The product sells for $130 per unit. According to the
activity-based costing system, the product margin for product ABA is:
Select one:
O a $4.290.10.
O b. $4159.50.
Oc $4 116.50.
Od $3.815.50.
O e. none of the given answer
Transcribed Image Text:Use Table 2 to answer this question. XYZ Corporation has provided the following data from its activity-based costing system (Table 2). The company makes 430 units of product ABA a year, requiring a total of 1,120 machine-hours, 40 orders, and 30 inspection-hours per year. The product's direct materials cost is $49.81 per unit and its direct labor cost is $12.34 per unit. The product sells for $130 per unit. According to the activity-based costing system, the product margin for product ABA is: Select one: O a $4.290.10. O b. $4159.50. Oc $4 116.50. Od $3.815.50. O e. none of the given answer
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