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

question 46

Multiple Choice

Spendlove Corporation has provided the following data from its activity-based costing system: The company makes 430 units of product S78N a year, requiring a total of 1,120 machine-hours, 40 orders, and 30 inspection-hours per year. The product's direct materials cost is $49.81 per unit and its direct labor cost is $12.34 per unit. The product sells for $129.90 per unit. According to the activity-based costing system, the product margin for product S78N is:

• A)$4,116.50
• B)$29,132.50
• C)$6,180.50
• D)$5,161.30

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Definitions:

Geographic Segmentation

The process of dividing a market into smaller groups based on variables such as location, region, country, or climate.

Fix-It-Fast

An approach or service strategy focused on quickly addressing and resolving customer issues or complaints to ensure satisfaction.

Snow Shovels

Tools designed specifically for the removal of snow from sidewalks, driveways, and other surfaces.

Benefit Segmentation

The grouping of consumers on the basis of the benefits they derive from products or services.