Mirabile Corporation uses activity-based costing to compute product margins. Overhead costs have already been allocated to the company's three activity cost pools--Processing, Supervising, and Other. The costs in those activity cost pools appear below: Processing$3,800Supervising$23,800Other$10,400Processing costs are assigned to products using machine-hours (MHs) and Supervising costs are assigned to products using the number of batches. The costs in the Other activity cost pool are not assigned to products. Activity data appear below: MHs (Processing)Batches (Supervising)Product M09,700500Product M5300500Total10,0001,000Finally, sales and direct cost data are combined with Processing and Supervising costs to determine product margins.?Product M0Product M5Sales
(total)$74,100$89,900Direct materials (total)$28,500$31,400Direct labor (total)$27,800$41,700What is the product margin for Product M5 under activity-based costing?
A. $2,686
B. $16,800
C. $4,786
D. $18,000
Answer: C
You might also like to view...
The ______ is the organization’s mechanism for identifying the ethics and values of the firm, and it serves as a guide to individual action.
A. code of conduct B. data and device policy C. worker right D. worker privilege
Investing activities include: (a) the purchase and sale of long-term assets, (b) loaning money in return for notes receivable, and (c) the purchase and sale of short-term investments.
Answer the following statement true (T) or false (F)
The introduction of a formal proposal sets the framework of ideas. What does the body of the proposal do?
Compare and contrast the following forms of business organization: sole proprietorship, general partnership, limited partnership, limited liability company, and corporation as to ease of formation, liability of owners, management, and tax implications