Bassanova company has two products a and b the annual

Reference no: EM13598644

Bassanova Company has two products: A and B. The annual production and sales level of Product A is 18,000 units. The annual production and sales level of Product B is 32,000. The company uses activity-based costing and has prepared the following analysis showing the estimated total cost and expected activity for each of its three activity cost pools:

Expected Activity

Activity Cost Pool Estimaied cost Activity ProductA Product B TotalActivity
Cutting $ 80,000 200 800 1,000
Sanding 360,000 600 5,400 6,000
Painting 60,000 1000 500 1,500

The following information is also available:

(In Dollars) A B
Sales price per unit $100.00 150.00
Direct material per unit 20.00 30.00
Direct labor per unit 10.00 15.00

Compute the profit margin for Products A and B using activity-based costing.

Reference no: EM13598644

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