Spendlove Corporation has provided the following data from its activity-based costing system:
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Spendlove Corporation has provided the following data from its activity-based costing system:
Activity Cost Pool Total Cost Total Activity
Assembly $1,495,676 58,700 machine-hours
Processing orders $53,658.00 1,800 orders
Inspection $147,420 2,100 inspection hours
The company makes 480 units of product S78N a year, requiring a total of 730 machine-hours, 50 orders, and 20 inspection-hours per year. The product's direct materials cost is $50.53 per unit and its direct labor cost is $12.70 per unit. The product sells for $118.20 per unit.
According to the activity-based costing system, what is the product margin for product S78N?
Answers: 2
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