Question:
Rosenbrook Corporation has provided the following data from its activity-based costing system:
|
Activity Cost Pool
|
Total Cost
|
Total Activity
|
|
Assembly
|
$710,770
|
37,000 machine-hours
|
|
Processing orders
|
$39,690
|
1,800 orders
|
|
Inspection
|
$119,116
|
1,940 inspection-hours
|
Data concerning one of the company's products, Product H73N, appear below:
|
Selling price per unit
|
$125.10
|
|
Direct materials cost per unit
|
$34.94
|
|
Direct labor cost per unit
|
$49.21
|
|
Annual unit production and sales
|
460
|
|
Annual machine-hours
|
510
|
|
Annual orders
|
80
|
|
Annual inspections
|
10
|
|
Selling price per unit
|
$125.10
|
According to the activity-based costing system, the product margin for product H73N is: