Question

# Donnati Corporation has provided the following data from its activity-based costing system: Activity Cost Pool Total...

Donnati Corporation has provided the following data from its activity-based costing system: Activity Cost Pool Total Cost Total Activity Assembly \$ 448,880 24,800 machine-hours Processing orders \$ 95,240 2,000 orders Inspection \$ 147,510 1,980 inspection-hours Data concerning one of the company's products, Product A43V, appear below: Selling price per unit \$ 128.20 Direct materials cost per unit \$ 22.44 Direct labor cost per unit \$ 46.31 Annual unit production and sales 390 Annual machine-hours 500 Annual orders 170 Annual inspection-hours 46 According to the activity-based costing system, the product margin for Product A43V is:

 Activity rate: Assembly 18.10 =448880/24800 Processing orders 47.62 =95240/2000 Inspection 74.50 =147510/1980 Sales revenue 49998.00 =390*128.20 Less: Costs Direct materials cost 8751.60 =390*22.44 Direct labor cost 18060.90 =390*46.31 Assembly 9050.00 =500*18.10 Processing orders 8095.40 =170*47.62 Inspection 3427.00 =46*74.50 Total Costs 47384.90 Product margin for Product A43V 2613.10

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