Problem:
The Jeremiah Johnson Fur Company has provided the following data from its activity-based costing system:
| Activity Cost Pool |
Total Cost |
Total Activty |
| Assembly |
$ 436,240 |
28,000 machine-hours |
| Processing Orders |
$ 60,896 |
1,600 orders |
| inspection |
$ 82,767 |
1,410 inspection-hours |
The company makes 230 units of product F60N a year, requiring a total of 480 machine-hours, 50 orders and 30 inspection-hours per year. The product´s direct materials cost is $ 12.70 per unit and its direct labor cost is $ 45.93 per unit. The product sells for $ 126.60 per unit.
Required:
Question: Using the activity-based costing system, what is the product margin for product F60N?
Note: Show supporting computations in good form.