Question

Product W1 Product M0 Sales (total) $ 69,700 $ 65,700 Direct materials (total) $ 31,100 $ 23,900 Direct labor (total) $ 22,400 $ 29,500 What is the product margin for Product W1 under activity-based costing

Answer 1

Product margin= $16,200

Step-by-step explanation:

Giving the following information:

Product W1

Sales (total) $ 69,700

Direct materials (total) $ 31,100

Direct labor (total) $ 22,400

To calculate the product margin, we need to use the following formula:

Product margin= sales - production costs

For W1:

Product margin= 69,700 - 31,100 - 22,400

Product margin= $16,200