Radakovich Corporation has provided the following data from its activity based costing system:
|
Activity Cost Pool |
Total Cost |
Total Activity |
|
Assembly |
$436,240 |
28,000 machine hours |
|
Processing orders |
$60,896 |
1,600 orders |
|
Inspection |
$82,767 |
1,410 inspection hours |
The company makes 230 units of product F60N a year, requiring a total of 480 machine hours, 50 orders, and 30 inspection hours per year. The product”s direct materials cost is $12.70 per unit and its direct labor cost is $45.93 per unit. The product sells for $126.60 per unit.
According to the activity based costing system, the product margin for product F60N is:
A) $6,251.70 per unit
B) $4,490.70 per unit
C) $6,393.70 per unit
D) $15,633.10 per unit