Data
Manufacturing overhead $500,000
Selling and administrative overhead $300,000
Assembling Units Processing Orders Supporting Customers Other
Manufacturing overhead 50% 35% 5% 10%
Selling and administrative overhead 10% 45% 25% 20%
Total activity 1,000 250 100
units orders customers
OfficeMart orders:
Customers 1 customer
Orders 4 orders
Number of filing cabinets ordered in total 160 units
Selling price $595
Direct materials $180
Direct labor $50
Determine the product margin for the OfficeMart orders under a traditional cost system
Manufacturing overhead ?
Total activity ? units
Manufacturing overhead per unit ? per unit
Sales ?
Costs:
Direct materials ?
Direct labor ?
Manufacturing overhead ? ?
Traditional costing product margin ?