Mirkle Corporation Uses the Following Activity Rates from Its Activity-Based

question 22

Multiple Choice

Mirkle Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products: Data for one of the company's products follow: The company produced 4,000 units of product during the period.Direct materials cost $7.30 per unit and direct labor cost $5.45 per unit.How much overhead cost would be assigned to Product P59G using the activity-based costing system?

• A)$54,482.56
• B)$3,138.24
• C)$10,014.40
• D)$154.78
• E)$5,301.76

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Definitions:

DuPont Formula

A formula that breaks down Return on Equity into three parts: profitability, operating efficiency, and financial leverage, to analyze a company's financial health.

Profit Margin

A profitability ratio calculated as net income divided by revenue, showing the percentage of profit made from sales.

Income From Operations

The profit realized from a business's operational activities, calculated before taxes and interest are deducted.

Profit Margin

A financial metric that measures the percentage of revenue remaining after all expenses, taxes, and costs have been deducted.