Spendlove Corporation has provided the following data from its activity-based costing system: Activity Cost Pool Total Cost Total Activity Assembly $1,114,920 57,000 machine hours Processing Orders $47,016 1,800 orders Inspection $ 107,328 1,560 inspection-hours

The company makes 430 units of product S78N a year, requiring a total of 1,120 machine-hours, 40 orders, and 30 inspection-hours per year. The product's direct materials cost is $49.81 per unit and its direct labor cost is $12.34 per unit. The product sells for $129.90 per unit. According to the activity-based costing system, the product margin for product S78N is:

A. $4,116.50
B. $29,132.50 x
C. $6,180.50 x
D. $5,161.30

Option (A) is correct.

Explanation:

Given that,

Assembly:

Total Cost = $1,114,920

Total activity = 57,000

Processing orders:

Total Cost = $47,016

Total activity = 1,800

Inspection:

Total Cost = $107,328

Total activity = 1,560

Units produced = 430

Cost per activity for Assembly:

= Total Cost ÷ Total activity

= $1,114,920 ÷ 57,000

= $19.56

Cost per activity for Processing Orders:

= Total Cost ÷ Total activity

= $47,016 ÷ 1,800

= $26.12

Cost per activity for Inspection:

= Total Cost ÷ Total activity

= $107,328 ÷ 1,560

= $68.8

Cost for 430 unit Activities for Assembly:

= Cost per Activity × Activities for total 430 units

= $19.56 × 1,120 machine-hours

= $21,907.2

Cost for 430 unit Activities for Processing orders:

= Cost per Activity × Activities for total 430 units

= $26.12 × 40 orders

= $1,044.8

Cost for 430 unit Activities for Inspection:

= Cost per Activity × Activities for total 430 units

= $68.8 × 30 inspection-hours per year

= $2,064

Total costs:

= Cost for 430 unit Activities for Assembly + Cost for 430 unit Activities for Processing orders + Cost for 430 unit Activities for Inspection

= $21,907.2 + $1,044.8 + $2,064

= $25,016

Product margin for product S78N:

= Sales - Total Costs

= (430 × 129.90) - [430 x ($49.81 + $12.34)] - $25,016

= $55,857 - $26,724.5 - $25,016

= $4,116.5

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi