Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. tb mc qu. 7-161 handal corporation uses activity-b

TB MC Qu. 7-161 Handal Corporation uses activity-based ... Handal Corporation uses activity-based...

60.1K

Verified Solution

Question

Accounting

TB MC Qu. 7-161 Handal Corporation uses activity-based ...

Handal Corporation uses activity-based costing to compute product margins. Overhead costs have already been allocated to the company's three activity cost pools--Machining, Order Filling, and Other. The costs in those activity cost pools appear below:

Machining $ 15,800
Order Filling $ 6,400
Other $ 9,800

Machining costs are assigned to products using machine-hours (MHs) and Order Filling costs are assigned to products using the number of orders. The costs in the Other activity cost pool are not assigned to products. Activity data appear below:

MHs (Machining) Orders (Order Filling)
Product O4 4,800 300
Product S1 15,200 1,700

Finally, sales and direct cost data are combined with Machining and Order Filling costs to determine product margins.

Product O4 Product S1
Sales (total) $ 70,200 $ 112,200
Direct materials (total) $ 23,900 $ 44,300
Direct labor (total) $ 38,900 $ 46,700

What is the product margin for Product S1 under activity-based costing?

Multiple Choice

  • $17,592

  • $29,800

  • $3,752

  • $21,200

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students