.Pinnocle Corporation has provided the following data from its activity-based costing system:
Activity Cost Pool Total Cost Total Activity
Assembly $1,405,800 71,000 machine-hours
Processing orders $50,768 1,900 orders
Inspection $135,100 1,930 inspection-hours
PNW Manufactures 440 units of product S70N a year, requiring a total of 670 machine hours, 30 orders, and 15 inspection hours per year. The product's direct materials cost is $50.77 per unit and its direct labor cost is $12.82 per unit. The product sells for $121.30 per unit.
According to the activity-based costing system, the product margin for product S78N is:
a. $8,136.70.
b. $21,352.70.
c. $7,086.70.
d. $8,422.70.