The associative property is the answer
The activity Rate for the Supervising activity cost pool under activity-based costing is closest to = 38000 / 1000 = $ 38 per batch
What is Product Margin ?
Product Margin is the difference in the amount of sales to the costing of the product.
The calculation of product margin for product M(5) under activity based costing
Product M(5)
Sales $89900
Less : Costs
Direct Material $31400
Direct Labour $41700
Processing $114
Supervising $12014
Product Margin $4672
Processing = ($ 3800 / 10000 ) * 300 = $114
Supervising = $ (23800 / 1000) * 500 = $11900
Total overhead costs = $ 11900 + $ 114 = $12014
Therefore the product margin is $4672
The activity Rate for the Supervising activity cost pool under activity-based costing is closest to = 38000 / 1000 = $ 38 per batch
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Let L = how much is lamp should cost
L = [(50,000)(0.15) + 50,000]/(2500)
Calculate the right side of the equation to find your answer.
