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

question 4

Multiple Choice

Trauscht Corporation has provided the following data from its activity-based costing system:
The company makes 340 units of product P23F a year, requiring a total of 710 machine-hours, 80 orders, and 40 inspection-hours per year. The product's direct materials cost is $40.05 per unit and its direct labor cost is $14.35 per unit. The product sells for $121.90 per unit.
According to the activity-based costing system, the product margin for product P23F is:

• A) $9,223.20
• B) $7,853.60
• C) $5,401.60
• D) $22,950.00

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Definitions:

Inductive Reasoning

A method of reasoning in which specific observations or measurements are used to make general conclusions or theories.

Formal Reasoning

The process of thinking logically and methodically about abstract concepts, often using systems of rules.

Informal Reasoning

The process of thinking about something in a non-structured or non-formal way, often based on personal judgment or experience.

Algorithm

A set of rules or a step-by-step process designed to perform a specific task or solve a problem.