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Spendlove Corporation has provided the following data from its activity-based costing system:

The company makes 430 units of product S78N 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 $129.90 per unit.

According to the activity-based costing system, the product margin for product S78N is:

A) $6,180.50

B) $29,132.50

C) $4,116.50

D) $5,161.30

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M958684

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