16 Holzhauer Corporation makes a single product. Each unit requires $55 of direct materials. Factory overhead is applied based on the 150% of DIRECT LABOR COST. Two-thirds of the factory overhead is fixed. The company reported the following results for March: Number of units sold 8,000 units Selling price per unit S Unit cost of goods sold 300 per unit S Variable selling expense per unit Total fixed selling expense 130 per unit ve proper (var) S 18 per unit- $ Total fixed administrative expense beginning finished goods inventory Variable administrative expense per unit 54,700) Sales3 (1) (var) DM DL 2494 opp S 32 per unit S 242,700 ending finished goods inventory zero zero The contribution margin for March is: $960,000 b. $1,200,000 c. $1,320,000 d $1,440,000 $15: variable 240000 unit #150 400,000 togs 2,000,000 . 15:45 000 55 30 130 -1040000 X8600 C 10000 297400 1,200 00 000 1702600 DM= 55 MOH applied 1.5*DLC CM= (300*8,000) (150*8,000) = 1,200,000 COGS=DM+ DL + MOH 130 130 55+ DL + 1.5*DLC 55+ 2.5 DL 130 55 2.5 DL DL 75/2.5 = 30 MOH= 45 (2/3*45) 30 FC, 15 VC 2/3 of MOH is fixed