Quantum Corporation Has Provided the Following Data from Its Activity-Based

question 28

Multiple Choice

Quantum Corporation has provided the following data from its activity-based costing system: The company makes 430 units of product R32E a year,requiring a total of 1,120 machine-hours,40 orders,and 30 inspection-hours per year.The product's direct materials cost is $49.81 per unit and its direct labor cost is $12.34 per unit.The product sells for $129.90 per unit.According to the activity-based costing system,the product margin for product R32E is:

• A)$4,116.50
• B)$29,132.50
• C)$6,180.50
• D)$5,161.30
• E)$4,981.00

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Definitions:

Business Plan

A formal document detailing a business's goals, strategies, target market, and financial forecasts.

Balanced Portfolio

An investment strategy involving holding a variety of assets classes, such as stocks, bonds, and cash, to reduce risk while aiming to achieve a reasonable return.

Earned Income

Revenue generated from the sale of goods or services by an organization or individual.

Earned Income

Earned income is revenue generated from the sale of goods and services. For nonprofits, this includes income earned aside from donations and grants.