Pinnocle Corporation has provided the following data from its activity-based costing system: Activity Cost Pool Total Cost Total Activity Assembly $1,321,240 67,000 machine-hours Processing orders 39,780 1,500 orders Inspection 105,792 1,520 inspection-hours The company makes 470 units of product S78N a year, requiring a total of 720 machine-hours, 40 orders, and 15 inspection-hours per year. The product's direct materials cost is $50.45 per unit and its direct labor cost is $12.66 per unit. The product sells for $118.40 per unit. According to the activity-based costing system, the product margin for product S78N is:
Pinnocle Corporation has provided the following data from its activity-based costing system: Activity Cost Pool Total Cost Total Activity Assembly $1,321,240 67,000 machine-hours Processing orders 39,780 1,500 orders Inspection 105,792 1,520 inspection-hours The company makes 470 units of product S78N a year, requiring a total of 720 machine-hours, 40 orders, and 15 inspection-hours per year. The product's direct materials cost is $50.45 per unit and its direct labor cost is $12.66 per unit. The product sells for $118.40 per unit. According to the activity-based costing system, the product margin for product S78N is:
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 27E: Plata Company has identified the following overhead activities, costs, and activity drivers for the...
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