Answer:
$ 5,401.60
Explanation:
Activity cost pool
<em>Assembly</em>: $ 698,720 (Total Cost) / $ 44,000 (Total activity machine-hours)
= $ 15.88 per machine-hour
<em>Processing Orders</em>: $ 90,763 (Total cost) / 1,900 orders = 47.77 per order
<em>Inspection</em>: $ 119,535 / 1,950 inspection-hours = $61.30 per inspection-hour
Overhead Costs:
Assembly: 15.88 per MH *710 MHs = 11,274.80
Processing Orders: $ 47.77 per order * 80 orders = $3,821.60
Inspection: $ 61.30 per IH * 40 IHs = 2,452.00
<em>Sales</em>: (340 * 121.90) = $ 41,446.00
<em>Costs</em>:
Direct materials (340 * 40.05) = $ 13,617.00
Direct labor (340 * $ 14.35) = $ 4,879.00
Assembly $ 11,274.80
Processing $ 3,821,60
Inspection $ 2,452.00
<em>Total of costs</em>: $ 36,044.40
<em>Product Margin</em>: (Costs - Sales) $ 5,401.60
