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

question 223

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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Definitions:

Bearer

A person in the possession of an instrument payable to bearer or indorsed in blank.

Negotiable

Capable of being transferred or modified in terms of agreement or ownership through endorsement or delivery.

On Demand

A service or product made available whenever requested by a customer, often implying immediate or quick delivery.

Acceleration Clause

A provision in a loan contract that allows the lender to demand immediate repayment of the entire loan amount if certain conditions are breached.