Quantum Corporation has provided the following data from its activity-based costing system:Activity Cost PoolOverhead Cost Total ActivityAssembly$1,114,920   57,000machine hoursProcessing orders$47,016   1,800ordersInspection$107,328   1,560inspection hoursThe company makes 430 units of product R32E 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 profit for product R32E is:

A. $29,132.50
B. $4,981.00
C. $4,116.50
D. $5,161.30
E. $6,180.50


Answer: C

Business

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