Computing unit product cost, absorption costing Calculate the unit product cost using absorption costing. Round your answer to the nearest cent.
Use the following information for Short Exercises S21-2 and S21-3.
Martin Company had the following costs:
Units produced 320 units Direct materials $ 71 per unit Direct labor 40 per unit Variable manufacturing overhead 13 per unit Fixed manufacturing overhead 7,360 per year Variable selling and administrative costs 22 per unit
Fixed selling and administrative costs 1,920 per year
The total unit product cost is $147.
Fixed manufacturing overhead = Total fixed manufacturing overhead / No. of units produced
Variable manufacturing overhead
Fixed manufacturing overhead
Total unit product cost
Computing absorption cost per unit and variable cost per unit
Adamson, Inc. has the following cost data for Product X:
Direct materials $ 41 per unit Direct labor 57 per unit Variable manufacturing overhead 7 per unit Fixed manufacturing overhead 20,000 per year
Calculate the unit product cost using absorption costing and variable costing when production is 2,000 units, 2,500 units, and 5,000 units.
The Stark Company manufactures a product that is expected to incur $20 per unit in variable production costs and sell for $40 per unit. The sales commission is 10% of the sales price. Due to intense competition, Stark actually sold 200 units for $38 per unit. The actual variable production costs incurred were $23.75 per unit. Calculate the total contribution margin and contribution margin ratio at the expected price/costs and the actual price/costs. How might management use this information?
Question: Preparing variable costing income statements, production exceeds sales
ReVitalAde produced 13,000 cases of powdered drink mix and sold 12,000 cases in April 2018. The sales price was $29, variable costs were $12 per case ($9 manufacturing and $3 selling and administrative), and total fixed costs were $100,000 ($91,000 manufacturing overhead and $9,000 selling and administrative). The company had no beginning Finished Goods Inventory.
Using absorption and variable costing
Meyer Company reports the following information for March:
Net Sales Revenue $ 45,300
Variable Cost of Goods Sold 12,500
Fixed Cost of Goods Sold 11,800
Variable Selling and Administrative Costs 14,000
Fixed Selling and Administrative Costs 5,400
Using variable costing, service company Henry’s Helpers provides locksmith services. One type of service call is to evaluate private residences for security concerns and make recommendations for a safety plan. Use the data below to determine the company’s total contribution margin, contribution margin per service call, and contribution margin ratio when 220 service calls are made in the month of June.
Service Revenue $ 170 per service call
Variable Costs 68 per service call
Fixed Costs 21,040 per month
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