Handal Corporation uses activity-based costing to compute product margins. Overhead costs have already been allocated to the company's three activity cost pools--Machining, Order Filling, and Other. The costs in those activity cost pools appear below: Machining $ 15,800 Order Filling $ 6,400 Other $ 9,800 Machining costs are assigned to products using machine-hours (MHs) and Order Filling costs are assigned to products using the number of orders. The costs in the Other activity cost pool are not assigned to products. Activity data appear below: MHs (Machining) Orders (Order Filling) Product O4 4,800 300 Product S1 15,200 1,700 Finally, sales and direct cost data are combined with Machining and Order Filling costs to determine product margins. Product O4 Product S1 Sales (total) $ 70,200 $ 112,200 Direct materials (total) $ 23,900 $ 44,300 Direct labor (total) $ 38,900 $ 46,700 What is the product margin for Product S1 under activity-based costing
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Handal Corporation uses activity-based costing to compute product margins. Overhead costs have alrea...
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