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

question 144

Multiple Choice

Feldpausch Corporation has provided the following data from its activity-based costing system: The company makes 470 units of product W26B a year, requiring a total of 660 machine-hours, 50 orders, and 40 inspection-hours per year. The product's direct materials cost is $40.30 per unit and its direct labor cost is $42.22 per unit. The product sells for $118.00 per unit.
According to the activity-based costing system, the product margin for product W26B is:

• A) $6,444.70
• B) $4,679.20
• C) $3,384.70
• D) $16,675.60

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