A manufacturing company that produces a single product has provided the following data concerning its most recent
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Question:
A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:
Selling price | $ | 88 |
Units in beginning inventory | 0 | |
Units produced | 5,200 | |
Units sold | 4,900 | |
Units in ending inventory | 300 | |
Variable costs per unit: | ||
Direct materials | $ | 12 |
Direct labor | $ | 23 |
Variable manufacturing overhead | $ | 2 |
Variable selling and administrative expense | $ | 5 |
Fixed costs: | ||
Fixed manufacturing overhead | $ | 161,200 |
Fixed selling and administrative expense | $ | 63,700 |
The total contribution margin for the month under variable costing is:
a. $64,200
b. $249,900
c. $225,400
d. $98,000
Related Book For
Managerial Accounting for Managers
ISBN: 978-1259578540
4th edition
Authors: Eric Noreen, Peter Brewer, Ray Garrison
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