Munar 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 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: Finally, sales and direct cost data are combined with Machining and Order Filling costs to determine product margins. What is the product margin for Product X6 under activity-based costing?
A)$22, 400
B)$3, 572
C)$29, 700
D)$17, 302

Question

Munar 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 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:  Finally, sales and direct cost data are combined with Machining and Order Filling costs to determine product margins.  What is the product margin for Product X6 under activity-based costing?
A)$22, 400 
B)$3, 572 
C)$29, 700 
D)$17, 302

Quizplus · Accepted Answer

The Answer of Munar 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 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:  Finally, sales and direct cost data are combined with Machining and Order Filling costs to determine product margins.  What is the product margin for Product X6 under activity-based costing?
A)$22, 400 
B)$3, 572 
C)$29, 700 
D)$17, 302

Munar Corporation Uses Activity-Based Costing to Compute Product Margins