Contribution Margin Analysis

The actual variable cost of goods sold for a product was $40 per unit, per unit, while the planned variable cost of goods sold was $47 per unit. The volume increased by 6,600 units to 82,400 actual total units. Enter all amounts as positive numbers.

a. Determine variable cost quantity factor.	$fill in the blank 1
b. Determine the unit cost factor for variable cost of goods sold

Inventory Valuation under Absorption Costing and Variable Costing

At the end of the first year of operations, 5,000 units remained in the finished goods inventory. The unit manufacturing costs during the year were as follows:

Direct materials	$27.50
Direct labor	14.10
Fixed factory overhead	7.00
Variable factory overhead	6.20

Determine the cost of the finished goods inventory reported on the balance sheet under (a) the absorption costing concept and (b) the variable costing concept.

Absorption costing	$fill in the blank 1
Variable costing