Spendlove Corporation has provided the following data from its activity-based costing system: Activity Cost Pool Total Cost Total Activity Assembly $1,114,920 57,000 machine hours Processing Orders $47,016 1,800 orders Inspection $ 107,328 1,560 inspection-hours
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 x
C. $6,180.50 x
D. $5,161.30
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