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COTB MC Qu. 7-67 (Algo) in its first year of operations... 22 In its first year of operations a company produced and sold 70.000 units of Product Asta sering price of 520 per und 17500 units of Product a selling price of $40 per unit. Additional Information relating to the company's only two products is shown below Direct materials Direct labor Manufacturing overhead Cost of goods sold Product Products $.436,300 $.248.000 $ 200,000 $ 104,000 Total $. 684,300 304,000 608,000 $ 1,596,300 The company created an activity-based costing system that allocated its manufacturing overhead costs to four activities as follows: Activity Coat Pool and Activity Measure) Machining (machine-hours) Setups (setup hours) Product design (number of products) Other (organization-sustaining costs) Total manufacturing overhead cost Manufacturing Overhead $ 213,500 157,500 120,000 117,000 $ 608,000 Product A 90,000 75 1 NA Activity Products 62,500 300 1 Total 152.500 375 2 NA The company's ABC implementation team also concluded that $50,000 and $100,000 of the company's advertising expenses (edit to Product A and Product B, respectively. The remainder of its selling and administrative expenses ($400,000) was organization-sustaining If the company uses a traditional cost system that relies on plantwide overhead allocation based on direct labor dollars, what is the total for product margin) earned by Product B? 22 The company's Animplementation team ao concluded that $50,000 and $100,000 of the company's advertising pas could be chyce to Product A and Product respectively. The remainder of its selling and adminstrative expeno 5400.000) was organization sustaining in nature the company is a traditional cost system that relies on lontwide overhead location based on direct labor dollars. Wat is the groush for product margineamed by Product Moe Choice $36.300 $$40.000 $161.000 $61,000

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