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

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Zephyr Corporation has provided the following data from its activity-based costing system:  Activity Cost Pool  Overhead Cost  Total Activity  Assembly $383,18023,000 machine hours  Processing orders $50,7981,100 orders  Inspection $106,1101,620 inspection hours \begin{array} { l l l } \text { Activity Cost Pool } & \text { Overhead 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 LM41, appear below.
 Selling price per unit $124.60 Direct materials cost per unit$22.08 Direct labor cost per unit $45.77Annual unit production and sales 210Orders processed 80 Annual machine hours 320Annual inspection hours 10\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 {Orders processed } &80\\ \text { Annual machine hours } &320\\ \text {Annual inspection hours } &10\\\end{array}

According to the activity-based costing system, the product margin for product LM41 is:

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Definitions:

Overtime Compensation

Additional pay provided to employees who work beyond the standard hours defined by their contract or by law.

Noncompetition Clause

A provision within a contract that restricts one party from engaging in activities that compete with the other party, typically after the termination of the agreement.

Enforceable

Describes a contract or legal obligation that is valid and can be upheld and compelled by law.

Criteria

Standards, rules, or tests by which something can be judged or decisions are made.

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