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, 35 orders, and 40 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. none of the given answer. O b. $4,159.50. O c. $3,602.10. O d. $4,290.10. O e. $3,815.50.
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, 35 orders, and 40 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. none of the given answer. O b. $4,159.50. O c. $3,602.10. O d. $4,290.10. O e. $3,815.50.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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, 35 orders, and 40 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. none of the given answer.
O b. $4,159.50.
O c. $3,602.10.
O d. $4,290.10.
O e. $3,815.50.

Transcribed Image Text:Table 2
Activity Cost Pool
Assembly
Processing orders
Inspection
Total Activity
57,000 machine-hours
1,800 orders
1,560 inspection-hours
Total Cost
S 1,114,920
47,016
107,328
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