Hopscotch limited, a manufacturer of a variety of products, uses an activityminusbased costing system. information from its system for the year for all products follows: activity cost pool total cost total activity assembly $ 584 comma 300 23 comma 000 machineminushours inspection $ 340 comma 800 7 comma 500 inspectionminushours packaging $ 24 comma 500 1 comma 400 order hopscotch limited makes 480 of its product b63 a year, which requires a total of 34 machine hours, 13 inspection hours, and 16 orders. product b63 requires $ 40.70 in direct materials per unit and $ 63.20 in direct labor per unit. product b63 sells for $ 275.00 per unit. what is the profit margin in total for product b63? (do not round intermediary calculations and round your final answer to the nearest cent.)

The profit margin in total for Product B63 is $80,394

Explanation:

The computation of the profit margin is shown below:

= Sales - direct material cost - direct labor cost - assemble overhead - inspection overhead - packaging overhead

where,

Sales = Number of the number produced × selling price per unit

         = 480 × $275

         = $132,000

Direct material cost = Number of number produced × direct material per unit

= 480 × $40.70

= $19,536

Direct labor cost = Number of number produced × direct labor per unit

= 480 × $63.20

= $30,336

Assembly overhead = (Assembly cost  ÷ machine hours) × required machine hours

= ($584,300 ÷ 23,000) × 34 machine hours

= $863.75

Inspection overhead = (Inspection cost  ÷Inspection hours) × required Inspection hours

= ($340,800 ÷ 7,500) × 13 inspection hours

= $590.72

Packaging overhead = (Packaging cost  ÷ orders) × required orders

= ($24,500 ÷ 1,400) × 16 orders

= $280

Now put these values to the above formula  

So, the value would equal to

= $132,000 - $19,536 -  $30,336 - $863.75 - $590.72 - $280

= $80,393.53

answer; post closing trial balance;