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:
|Direct materials cost||8751.60||=390*22.44|
|Direct labor cost||18060.90||=390*46.31|
|Product margin for Product A43V||2613.10|
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