Wadsworth Industries Manufactures Small Appliances and Uses an Activity-Based Costing

question 251

Multiple Choice

Wadsworth Industries manufactures small appliances and uses an activity-based costing system. Information from its system for the year for all products follows: Wadsworth makes 975 of its stand mixers a year, which requires a total of 22 machine hours, 10 inspection hours, and 13 orders. The stand mixer requires $10.00 in direct materials per unit and $13.50 in direct labor per unit. The stand mixer sells for $150 per unit. What is the profit margin in total for the stand mixer?

• A)$146,253.67
• B)$23.50
• C)$22,912.50
• D)$122,411.20

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