According to the activity-based costing system, the product margin for product H73N is 1 answer below »
Rosenbrook Corporation has provided the following data from its activity-based costing system:
Activity Cost Pool
Total Cost
Total Activity
Assembly
$710,770
37,000 machine-hours
Processing orders
$39,690
1,800 orders
Inspection
$119,116
1,940 inspection-hours
Data concerning one of the company’s products, Product H73N, appear below:
Selling price per unit
$125.10
Direct materials cost per unit
$34.94
Direct labor cost per unit
$49.21
Annual unit production and sales
460
Annual machine-hours
510
Annual orders
80
Annual inspections
10
Selling price per unit
$125.10
According to the activity-based costing system, the product margin for product H73N is:
A) $7,275.90 per unit
B) $6,661.90 per unit
C) $18,837.00 per unit
D) $8,425.90 per unit