Exercise $19-15($Algo$)$ Absorption costing and overproduction LO C$1$ Exercise $19-15($Algo$)$ Absorption costing and overproduction LO C$1$

A manufacturer reports direct materials of $$6$ per unit, direct labor of $$3$ per unit, and variable overhead of $$5$ per unit. Fixed overhead

is $$172,000$ per year, and the company estimates sales of $17,200$ units at a sales price of $$26$ per unit for the year. The company has no

beginning finished goods inventory.

If the company uses absorption costing, compute gross profit assuming

$($a$)17,200$ units are produced and $17,200$ units are sold and

$($b$)21,500$ units are produced and $17,200$ units are sold.

If the company uses variable costing, how much would contribution margin differ if the company produced $21,500$ units instead

of producing $17,200?$ Assume the company sells $17,200$ units. Hint: Calculations are not required.

Complete this question by entering your answers in the tabs below.

If the company uses absorption costing, compute gross profit assuming $($a$)17,200$ units are produced and $17,200$ units are

sold and $($b$)21,500$ units are produced and $17,200$ units are sold.

A manufacturer reports direct materials of $$6$ per unit, direct labor of $$3$ per unit, and variable overhead of $$5$ per unit. Fixed overhead

is $$172,000$ per year, and the company estimates sales of $17,200$ units at a sales price of $$26$ per unit for the year. The company has no

beginning finished goods inventory.

If the company uses absorption costing, compute gross profit assuming

$($a$)17,200$ units are produced and $17,200$ units are sold and

$($b$)21,500$ units are produced and $17,200$ units are sold.

If the company uses variable costing, how much would contribution margin differ if the company produced $21,500$ units instead

of producing $17,200?$ Assume the company sells $17,200$ units. Hint: Calculations are not required.

Complete this question by entering your answers in the tabs below.

If the company uses variable costing, how much would contribution margin differ if the company produced $21,500$ units

instead of producing $17,200?$ Assume the company sells $17,200$ units. Hint: Calculations are not required.

Contribution margin