Larcker Manufacturings cost accountant has provided you with the following information for January operations: Direct materials .

Question:

Larcker Manufacturing’s cost accountant has provided you with the following information for January operations:

Direct materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $105 per unit

Fixed manufacturing overhead costs . . . . . . . . . . . . . . . . $675,000

Sales price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $395 per unit

Variable manufacturing overhead . . . . . . . . . . . . . . . . . . $60 per unit

Direct labor. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $120 per unit

Fixed marketing and administrative costs . . . . . . . . . . . . $585,000

Units produced and sold . . . . . . . . . . . . . . . . . . . . . . . . . 30,000

Variable marketing and administrative costs . . . . . . . . . . $24 per unit


Required

Determine each of the following:

a. Variable cost.

b. Variable manufacturing cost.

c. Full absorption cost.

d. Full cost.

e. Profit margin.

f. Gross margin.

g. Contribution margin.


Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Fundamentals of Cost Accounting

ISBN: 978-0077398194

3rd Edition

Authors: William Lanen, Shannon Anderson, Michael Maher

Question Posted: