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