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Assume a company produces and sells only two products-14.000 units of Product A and 6,000...

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Accounting

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Assume a company produces and sells only two products-14.000 units of Product A and 6,000 units of Product 8. The selling prices are 565 per unit for Product A and 596 per unit for Product 8. Product A's direct materials and direct tabor costs per unit are $31 and $12, respectively. Productes direct materials and direct labor costs per unit are $34 and 515, respectively. The company is considering implementing an activity-based costing (ABC) system that allocates all of its manutacturing overhead to three cost pools The following additional information is available for the company as a whole and for Products A and B. Activity Cost Pool Machining Machine setups Product design Activity Measure Machine-hours Number of setups Number of products Estimated Overhead Cost $ 300,000 $ 150.000 $ 78,000 Expected Activity 15,000 MH 200 Setups 2 Products Activity Measure Machine hours Number of setups Number of products Product A 9,000 50 1 Products 6,000 150 1 Using the ABC system, what is the product margin for Product A? Using the ABC system, what is the product margin for Product A? Multiple Choice 3:45 $54,500 O $48,500 $76,500 $51,500

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