Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: Selling price $151 Units in
| A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: |
| Selling price | $151 |
| Units in beginning inventory | 0 |
| Units produced | 2,620 |
| Units sold | 2,210 |
| Units in ending inventory | 410 |
| Variable costs per unit: | |
| Direct materials | $49 |
| Direct labor | $21 |
| Variable manufacturing overhead | $12 |
| Variable selling and administrative | $11 |
| Fixed costs: | |
| Fixed manufacturing overhead | $96,940 |
| Fixed selling and administrative expenses | $28,730 |
| The total gross margin for the month under absorption costing is: |
A-$70,720
B-$17,680
C-$117,380
D-$128,180
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