Rosenbrook Corporation has provided the following data from its activity-based costing system: Data concerning one of the company's products, Product H73N, appear below: According to the activity-based costing system, the product margin for product H73N is:
A)$7,275.90
B)$6,661.90
C)$18,837.00
D)$8,425.90

Question

Rosenbrook Corporation has provided the following data from its activity-based costing system:  Data concerning one of the company's products, Product H73N, appear below:  According to the activity-based costing system, the product margin for product H73N is:
A)$7,275.90 
B)$6,661.90 
C)$18,837.00 
D)$8,425.90

Quizplus · Accepted Answer

Product margin can be calculated as follows:
Total revenue - Total cost
= $33,000 - ($12,680 + $9,377 + $4,949)
= $33,000 - $26,006
= $6,994
Therefore, the product margin for Product H73N is $6,994 or $6,661.90 rounded to the nearest cent. Option B is the correct answer.

Rosenbrook Corporation Has Provided the Following Data from Its Activity-Based