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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:

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Answer #1
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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