Smagula Company has two products: A and B. The annualproduction and sales level of Product A is 18,188 units. The annualproduction and sales level of Product B is 31,652. The company usesactivity-based costing and has prepared the following analysisshowing the estimated total cost and expected activity for each ofits three activity cost pools. (Note that
the information provided above is the same as thatprovided for the previous question.)
The following information is also available: Sales price perunit $100.00
Direct material per unit 20.00
Direct labor per unit 10.00
Compute the profit margin for Product B usingactivity-based costing.