Question

Hopscotch​ Limited, a manufacturer of a variety of​ products, uses an

activity−based

costing system. Information from its system for the year for all products​ follows:

Activity cost pool	Total cost	Total activity
Assembly	$584,900	21,000	machine−hours
Inspection	$342,000	8,500	inspection−hours
Packaging	$24,600	1,400	order

Hopscotch Limited makes

490

of its product B63 a​ year, which requires a total of

34

machine​ hours,

11

inspection​ hours, and

20

orders. Product B63 requires

$45.70

in direct materials per unit and

$57.20

in direct labor per unit. Product B63 sells for

$285.00

per unit. What is the profit margin in total for Product​ B63? (Do not round intermediary calculations and round your final answer to the nearest​ cent.)

A.

$87,488.00

B.

$47,256.04

C.

$96.44

D.

$137,806.10

Answer 1