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

Pinnocle Corporation has provided the following data from its activity-based costing system:
$$\begin{array} { l c l } \text { Activity Cost Pool } & \text { Total Cost } & \text { Total Activity } \\\text { Assembly } & \$ 1,114,920 & 57,000 \text { machine-hours } \\\text { Processing orders } & \$ 47,016 & 1,800 \text { orders } \\\text { Inspection } & \$ 107,328 & 1,560 \text { inspection-hours }\end{array}$$
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.
C) $6,180.50.
D) $5,161.30.

Correct Answer:

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