Question: Would you let me know if I computed this problem correctly for my job order costing project? What is the contribution margin for Job #1

Would you let me know if I computed this problem correctly for my job order costing project?

What is the contribution margin for Job #1 (assume that all selling and administrative cost and all manufacturing overhead costs are fixed.)?

My answer is $25,150.00.

I used Sales - variable cost ($32,000 - $6850).

Sales of $32,000 is from Sales Revenue on the Income Statement and the variable cost is from solving the question below.

What is the total variable cost incurred for Job #1 (assume that all selling and administrative cost and all manufacturing overhead costs are fixed.)?

$6850

This is the cost summary for job #1:

Cost Summary

Direct Materials $6,700.00

Direct Labor $150.00

Manufacturing Overhead $2,700.00

Total Product Cost $9,550.00

Unit Product Cost $9,550.00

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