Wadsworth Industries Manufactures Small Appliances and Uses an Activity-Based Costing

Multiple Choice

Wadsworth Industries manufactures small appliances and uses an activity-based costing system. Information from its system for the year for all products follows: Wadsworth makes 975 of its stand mixers a year, which requires a total of 22 machine hours, 10 inspection hours, and 13 orders. The stand mixer requires $10.00 in direct materials per unit and $13.50 in direct labor per unit. The stand mixer sells for $150 per unit. What is the profit margin in total for the stand mixer?

A) $146,253.67
B) $23.50
C) $22,912.50
D) $122,411.20