Radakovich Corporation has provided the following data from

Radakovich Corporation has provided the following data from its activity-based costing system: Activity Cost Pools Assembly Processing orders Inspection Total Cost $ 1,372,578 63,235 151,316 Total Activity 61,800 machine-hours 2,010 orders 2,090 inspection-hours The company makes 600 units of product F6ON a year, requiring a total of 1,200 machine-hours, 78 orders, and 34 inspection-hours per year. The product\'s direct materials cost is $49.55 per unit and its direct labor cost is $12.44 per unit. The product sells for $128.70 per unit According to the activity-based costing system, the product margin for product F6ON is: (Round your intermediate calculations to 2 decimal places.) O $8,458.52 O $10,920.12 O $40,026.00 $10,912.40

Solution

Calculate product margin :

Calculate production margin :

So answer is a) $8458.52

	Activity rate
Assembly	1372578/61800 = 22.21 per mh
Processing orders	63235/2010 = 31.46 per order
Inspection	151316/2090 = 72.40 per inspection