Discuss solar salt adopts an activity-based costing system

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Solar Salt has determined that its total manufacturing cost of $700,000 is a mixture of unit-level costs, batch-level costs, and product line costs. Solar Salt has assembled the following information concerning the manufacturing costs and the driver used to allocate the costs in each activity pool (units, batches, and lines respectively).

 

Total Manufacturing Costs

Agricultural Products

Retail Products

Unit-level costs

$210,000

7,000 units

10,000 units

Batch-level costs

280,000

40 batches

80 batches

Product line costs

210,000

7 lines

13 lines

 

$700,000

 

 

Revenues for the Agricultural Products totaled $600,000. Revenue for Retail Products totaled $350,000. How much will gross profit in the agriculture division be if Solar Salt adopts an activity-based costing system?

(Please round your answer to the nearest dollar at the end of your answer.)

Reference no: EM131776750

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