90 In its first year of operations a company produced and sold 71000 units of Product A at a selling price of $30 per unit and 18,500 units of Product B at a selling price of $50 per unit

90 In its first year of operations a company produced and sold 71000 units of Product A at a selling price of $30 per unit and 18,500 units of Product B at a selling price of $50 per unit. Additional information relating to the company's only two products is shown below. Product A $441,300 $ 210,000 Product B $ 253,700 $ 109,000 10 points Direct materials Direct labor Manufacturing overhead Cost of goods sold Total $ 695,000 319,000 613,000 $1,627,000 Skloped The company created an activity-based costing system that allocated its manufacturing overhead costs to four activities as follows: eBook Activity References Activity Cost Pool (and Activity Measure) Machining (machine-hours) Setups (setup hours) Product design (number of products) Other (organization-sustaining costs) Total manufacturing overhead cost Manufacturing Overhead $ 214,500 158,500 121,000 119,000 $613,000 Product A 95,000 85 1 NA Product B Total 63,500 158,500 400 485 1 2 NA NA The company's ABC implementation team also concluded that $55,000 and $110,000 of the company's advertising expenses could be directly traced to Product A and Product B, respectively. The remainder of its selling and administrative expenses ($410,000) was organization-sustaining in nature. If the company uses a traditional cost system that relies on plantwide overhead allocation based on direct labor dollars, what is the total gross margin for product margin) earned by Product A? (Round your intermediate calculations to 2 decimal places.)
Multiple Choice $1.054,500 $1,075 500 O $1,020,500 S988.500