Pinnocle Corporation has provided the following data from its activity-based costing system: Activity Cost Pool Total Cost Total Activity Assembly $1,321,240 67,000 machine-hours Processing orders 39,780 1,500 orders Inspection 105,792 1,520 inspection-hours The company makes 470 units of product S78N a year, requiring a total of 720 machine-hours, 40 orders, and 15 inspection-hours per year. The product's direct materials cost is $50.45 per unit and its direct labor cost is $12.66 per unit. The product sells for $118.40 per unit. According to the activity-based costing system, the product margin for product S78N is:

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter3: Cost Behavior
Section: Chapter Questions
Problem 2CE: Corazon Manufacturing Company has a purchasing department staffed by five purchasing agents. Each...
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O
O
$9,683.10.
$10,743.90.
$10,727.10.
$25,986.30.
Transcribed Image Text:Multiple Choice O O $9,683.10. $10,743.90. $10,727.10. $25,986.30.
Pinnocle Corporation has provided the following data from its activity-based
costing system:
Activity Cost Pool
Total Cost
Total Activity
67,000 machine-hours
Assembly
$1,321,240
Processing orders
39,780
1,500 orders
Inspection
105,792
1,520 inspection-hours
The company makes 470 units of product S78N a year, requiring a total of 720
machine-hours, 40 orders, and 15 inspection-hours per year. The product's direct
materials cost is $50.45 per unit and its direct labor cost is $12.66 per unit. The
product sells for $118.40 per unit.
According to the activity-based costing system, the product margin for product
S78N is:
Transcribed Image Text:Pinnocle Corporation has provided the following data from its activity-based costing system: Activity Cost Pool Total Cost Total Activity 67,000 machine-hours Assembly $1,321,240 Processing orders 39,780 1,500 orders Inspection 105,792 1,520 inspection-hours The company makes 470 units of product S78N a year, requiring a total of 720 machine-hours, 40 orders, and 15 inspection-hours per year. The product's direct materials cost is $50.45 per unit and its direct labor cost is $12.66 per unit. The product sells for $118.40 per unit. According to the activity-based costing system, the product margin for product S78N is:
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