Hopscotch Limited, a manufacturer of a variety of products, uses an activitybased ...
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Accounting
Hopscotch Limited, a manufacturer of a variety of products, uses an
activitybased
costing system. Information from its system for the year for all products follows:
Activity cost pool
Total cost
Total activity
Assembly
$584,900
21,000
machinehours
Inspection
$342,000
8,500
inspectionhours
Packaging
$24,600
1,400
order
Hopscotch Limited makes
490
of its product B63 a year, which requires a total of
34
machine hours,
11
inspection hours, and
20
orders. Product B63 requires
$45.70
in direct materials per unit and
$57.20
in direct labor per unit. Product B63 sells for
$285.00
per unit. What is the profit margin in total for Product B63? (Do not round intermediary calculations and round your final answer to the nearest cent.)
A.
$87,488.00
B.
$47,256.04
C.
$96.44
D.
$137,806.10
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