Answer:
The answer is B) $3384,70
Explanation:
First we need to split the 3 main cost drivers into
Machine Hours - $1137360 / 84000 = 13,54
Processing Hours - $28479 / 1100 = 25,89
Inspection Hours - $97155 / 1270 = 76,5
Now we use the actual hours for the 470 units of W26B
470 units require 660 machine hours ( 660 x 13,54 ) + 40 inspection hours ( 40 x 76,5 ) + 50 orders ( 50 x 25,89 )
The total costs excluding the materials and labor cost are = $13290,9
Now we include the material and labor costs
Material Cost = 40,30 x 470 = $18941
Labors Costs = 42,22 x 470 = $19843,4
Total costs = $52075,3
Product sales = 118 x 470 = $55460
The margin = $3384,70
Therefore the answer is C.) 3384,70 as proven by the calculation above.
