Question
13. What would the contribution margin (CM) on a Variable Costing Income Statement be? Calculate the unit cost under variable costing and absorption costing. What
13. What would the contribution margin (CM) on a Variable Costing Income Statement be? Calculate the unit cost under variable costing and absorption costing. What would the gross margin (GM) on an Absorption Costing Income Statement be?
| Units: beginning inventory | 0 | Product or Period | Variable or Fixed |
| Units: Produced | 8,900 |
|
|
| Units: Sold ($100 each) | 8,500 |
|
|
| Units: Ending inventory | 400 |
|
|
| Variable costs per unit: |
|
|
|
| DM | $26 | Prod | Var |
| DL | $25 | Prod | Var |
| Variable manu OH | $4 | Prod | Var |
| Variable selling/admin | $4 | Period | Var |
| Fixed costs: |
|
|
|
| Fixed manu OH | $249,200 | Prod | Fixed |
| Fixed selling/admin | $17,000 | Period | Fixed |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started