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Compute the product margin for product YB

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Reference no: EM132562876

Question - COVID 19 Co has provided the following data from its activity-based costing system:

Activity Cost Pool

Total Cost

Total Activity

Assembly

$1,443,140

59,000 machine-hours

Processing orders

$80,905

2,750 orders

Inspection

$145,733

1,910 inspection-hours

The company makes 890 units of product YB a year, requiring a total of 2,070 machine-hours, 41 orders, and 35 inspection-hours per year. The product's direct materials cost is $56.46 per unit and its direct labor cost is $22.67 per unit. The product sells for $145.50 per unit According to the activity-based costing system, compute the product margin for product YB?

a $4,560.38

b. $5.450.38

c. $7.230.38

d. $6,340.38

Reference no: EM132562876

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