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

question 15

Multiple Choice

Donnati Corporation has provided the following data from its activity-based costing system:
$$\begin{array} { l c l} \text { Activity Cost Pool } & \text { Total Cost } & \text { Total Activity } \\\text { Assembly } & \$ 383,180 & 23,000 \text { machine-hours } \\\text { Processing orders } & \$ 50,798 & 1,100 \text { orders } \\\text { Inspection } & \$ 106,110 & 1,620 \text { inspection-hours }\end{array}$$
Data concerning one of the company's products, Product A43V, appear below:
$\begin{array}{llr} \text {Selling price per unit } &\$124.60\\ \text { Direct materials cost per unit } &\$22.08\\ \text { Direct labor cost per unit} &\$45.77\\ \text {Annual unit production and sales } &210\\ \text { Annual machine-hours } &320\\ \text {Annual orders } &80\\ \text { Annual inspection-hours } &10\end{array}$

According to the activity-based costing system, the product margin for Product A43V is:

• A) $2,891.90.
• B) $5,931.30.
• C) $11,917.50.
• D) $2,236.90.

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