Incomplete question :
The missing part of the question is here below :
Jennings Corporation has provided the following data from its activity based costing system.
Activity Cost Pool Total Cost Total Activity
Assembly $613,250 55,000 machine-hours
Processing Orders $46,170 1500 orders
Inspection $146,110 1,900 inspection-hours
Data concerning one of the company's products, product Athena appear below :
Selling price $120.80 per unit
Direct material cost $48.14 per unit
Direct labour cost $11.62 per unit
Annual production & sales 360 units
Annual machine-hours 1040
Annual orders 60 times
Annual inspection hours 30 hours
Answer : $6,224.60(B)
$ $
Sales ( $120.80*360) 43,488
Prime cost :
Direct Materials( 48.14*360) 17,330.4
Direct labours (11.62*360) 4183.2 21,513.6
Contribution 21,974.4
Overhead Costs :
Assembly (11.15*1040) 11,596
Processing Order( 30.78*60) 1846.8
Inspection costs(76.9*30) 2307 (15,749.8)
Margin 6224.6
Margin/unit = 6224.6/360 ⇒ $17.29
Step-by-step explanation:
Workings
Overhead Absorption Rate (OAR) =Total cost pool/Total Activity
-Assembly cost = 613,250/55,000 = $ 11.15/hr
-Processing Orders = 46,170/1500 = $30.78/order
-Inspection = 146,110/1900 =$76.9/hr