Smile Ltd. manufactures two types of products, Product A and Product B. For costing purposes,...
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Smile Ltd. manufactures two types of products, Product A and Product B. For costing purposes, the company uses activity-based costing (ABC) and reported the following data for September: Product B Product A 2,100 1,400 Activity Cost driver ABC Rate Materials Number of parts $5.00 per part handling Machining Machine hours $18.00 per hour Assembly Units assembled $4.60 per unit Inspection Units inspected $4.20 per unit Direct costs were as follows: 215 1,150 115 310 1,450 1,215 Product A Product B Labour $16,000 $16,00 Materials $5,600 $3,000 Using activity-based costing, what is the total production cost of Product A? $43,353 None of these options is correct. $41,743 $48,658
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