Gorlami S.p.A. produces automotive accessories that it sells for 110 each. The 2021 data are the following:

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Gorlami S.p.A. produces automotive accessories that it sells for €110 each. The 2021 data are the following:

Units produced 1,560

Units sold 1,400

Variable materials per unit €34

Variable labor per unit €18

Sales commission cost per unit €7

Total fixed manufacturing overhead €49,920

Total fixed selling and administrative costs €1,550

Required:

a) Compute the product cost per unit under absorption costing and under variable costing.
b) Calculate the contribution margin ratio.

Related Book For answer-question

Cost Accounting A Managerial Emphasis

ISBN: 978-0133428704

15th edition

Authors: Charles T. Horngren, Srikant M. Datar, Madhav V. Rajan

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Posted Date: Jun 10, 2023 02:57 AM

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Gorlami S.p.A. produces automotive accessories that it sells for 110 each. The 2021 data are the following:

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To compute the product cost per unit under absorption costing and variable costing we need to consid... View the full answer

Cost Accounting A Managerial Emphasis

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