1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total #units price/unit $50.00 $50.00 $50.00 $50.00 Sales $$ DM/unit $6.00 $6.00 $6.00 $6.00 DM $$ DLH/unit 2.0 2.0 2.0 2.0 total DLH rate/DLH $11.00 $11.00 $11.00 $11.00 DL $$ | 00 11:001:1:1:1:1:07 1:001: 1: 1:1:1:01 1111 II OH/DLH $7.00 $7.00 $7.00 $7.00 OH $$ Mfg Cost ($$) D C D Gross Margin var SG&A/unit $1.00 $1.00 $1.00 $1.00 var SG&A $$ D fix SG&A $50,000 $ 50,000 $50,000 $50,000 total SG&A op income total sales units = 100,000; Q1 = 18%, Q2 = 17%, Q3 = 26%, Q4 = 39% remember the three elements of manufacturing cost assume no beginning or ending inventory