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

question 34

Multiple Choice

Zephyr Corporation has provided the following data from its activity-based costing system: $$\begin{array} { l l l } \text { Activity Cost Pool } & \text { Overhead Cost } & \text { Total Activity } \\\text { Assembly } & \$ 383,180 & 23,000 \text { machine hours } \\\text { Processing orders } & \$ 50,798 & 1,100 \text { orders } \\\text { Inspection } & \$ 106,110 & 1,620 \text { inspection hours }\end{array}$$ Data concerning one of the company's products, Product LM41, appear below.
$\begin{array}{llr} \text { Selling price per unit } &\$124.60\\ \text { Direct materials cost per unit} &\$22.08\\ \text { Direct labor cost per unit } &\$45.77\\ \text {Annual unit production and sales } &210\\ \text {Orders processed } &80\\ \text { Annual machine hours } &320\\ \text {Annual inspection hours } &10\\\end{array}$

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

• A) $3,178.20
• B) $11,917.50
• C) $5,931.30
• D) $2,891.90
• E) $2,236.90

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Definitions:

Competition

A situation in which entities strive against one another to gain objectives or advantages.

Conflict

A situation or process in which individuals or groups perceive opposition in needs, values, or interests, potentially leading to tension or disputes.

Emotional Conflict

Involves interpersonal difficulties that arise over feelings of anger, mistrust, dislike, fear, resentment, and the like.

Marketing Strategy

A comprehensive plan that outlines how a business will communicate the value of its products or services to potential customers to achieve its marketing goals.