Data from its activity-based costing system

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Reference no: EM131130119

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

Reference no: EM131130119

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