2. A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:

 

Selling price	$ 131
Units in beginning inventory	0
Units produced	3,320
Units sold	2,890
Units in ending inventory	430
Variable costs per unit:
Direct materials	$ 45
Direct labor	$ 15
Variable manufacturing overhead	$ 7
Variable selling and administrative expense	$ 19
Fixed costs:
Fixed manufacturing overhead	$92,960
Fixed selling and administrative expense	$28,900

 

The total gross margin for the month under absorption costing is: 

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Multiple Choice

a. $119,250

b. $130,050

c. $20,230

d. $104,040 

3. A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:

 

Units in beginning inventory	0
Units produced	4,850
Units sold	4,750
Units in ending inventory	100
Variable costs per unit:
Direct materials	$ 58
Direct labor	$ 60
Variable manufacturing overhead	$ 23
Variable selling and administrative expense	$ 21
Fixed costs:
Fixed manufacturing overhead	$101,850
Fixed selling and administrative expense	$47,500

 

What is the variable costing unit product cost for the month?

a. $141 per unit

b. $162 per unit

c. $183 per unit

d. $145 per unit