Wadsworth Industries manufactures small appliances and uses an activity-based costing system.Information from its system for the year for all products follows:
Wadsworth makes 775 of its stand mixers a year,which requires a total of 25 machine hours,10 inspection hours,and 12 orders.The stand mixer requires $15.00 in direct materials per unit and $11.50 in direct labor per unit.The stand mixer sells for $120 per unit.What is the profit margin in total for the stand mixer?
A)$91,979.50
B)$26.50
C)$20,537.50
D)$71,468.50

Question

Wadsworth Industries manufactures small appliances and uses an activity-based costing system.Information from its system for the year for all products follows: 
Wadsworth makes 775 of its stand mixers a year,which requires a total of 25 machine hours,10 inspection hours,and 12 orders.The stand mixer requires $15.00 in direct materials per unit and $11.50 in direct labor per unit.The stand mixer sells for $120 per unit.What is the profit margin in total for the stand mixer?
A)$91,979.50 
B)$26.50 
C)$20,537.50 
D)$71,468.50

Quizplus · Accepted Answer

D) 11ea7fd5_66bc_4eea_99dd_b30d24e98275_TB1766_00 11ea7fd5_66bc_4eeb_99dd_710e81a3f669_TB1766_00

Wadsworth Industries Manufactures Small Appliances and Uses an Activity-Based Costing