A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: Selling price Units in beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative expense Fixed costs: Fixed manufacturing overhead Fixed selling and administrative expense The total gross margin for the month under absorption costing is: $ 150 0 3,290 2,870 420 $ 47 $ 21 $ 14 $ 17 $115,150 $31,570
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Step 1: Calculate the total variable cost per unit Total variable cost per unit = Direct materials + Direct labor + Variable manufacturing overhead + Variable selling and administrative expense Total variable cost per unit = $47 + $21 + $14 + $17 Total variable Show more…
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A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: Units in beginning inventory 0 Units produced 4,800 Units sold 4,700 Units in ending inventory 100 Variable costs per unit: Direct materials $ 57 Direct labor $ 59 Variable manufacturing overhead $ 22 Variable selling and administrative $ 20 Fixed costs: Fixed manufacturing overhead $ 100,800 Fixed selling and administrative $ 47,000 What is the variable costing unit product cost for the month? $158 per unit $179 per unit $138 per unit $143 per unit
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Elfalan Corporation produces a single product. The cost of producing and selling a single unit of this product at the company's normal activity level of 80,000 units per month is as follows: Per Unit Direct materials $ 22.50 Direct labor $ 7.50 Variable manufacturing overhead $ 1.70 Fixed manufacturing overhead $ 19.00 Variable selling & administrative expense $ 2.70 Fixed selling & administrative expense $ 8.60 The normal selling price of the product is $67.80 per unit. An order has been received from an overseas customer for 3,000 units to be delivered this month at a special discounted price. This order would not change the total amount of the company's fixed costs. The variable selling and administrative expense would be $1.90 less per unit on this order than on normal sales. Direct labor is a variable cost in this company. What is the contribution margin per unit on normal sales? (Round your intermediate calculations to 2 decimal places.) a. $7.20 per unit b. $33.40 per unit c. $5.80 per unit d. $7.70 per unit
Lottie A.
RH makes and sells one product, which has the following standard production cost: Direct labour: $18 (3 hours at $6 per hour) Direct materials: $28 (4 kilograms at $7 per kg) Production overhead: Variable $20, Fixed $69 Standard production cost per unit: $69 Normal output is 16,000 units per annum. Variable selling, distribution, and administration costs are 20% of sales value. Fixed costs are $180,000 per annum. There are no units in finished goods inventory at 1 October 20X2. The fixed overhead expenditure is spread evenly throughout the year. The selling price per unit is $140. Production and sales budgets are as follows: Six months ending 31 March 20X3: Production 8,500 units, Sales 7,000 units Six months ending 30 September 20X3: Production 7,000 units, Sales 8,000 units Required: Prepare profit statements for each of the six-monthly periods, using the following methods of costing: (a) Marginal costing (b) Absorption costing
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