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

question 25

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:

Stable Market Value

Refers to assets or securities that demonstrate low volatility and maintain their value over time in various market conditions.

Floating-Rate

An interest rate that fluctuates over time with the market or an index, commonly used in variable-rate loans and adjustable-rate mortgages.

Interest Rates

The percentage charged on borrowed money, or earned through lending money or making investments, over a specified period.

Income Bond

An income bond is a type of bond that only pays interest if the issuing company is profitable, making it a riskier investment than bonds with guaranteed interest payments.