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Aaron Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $102 Units in beginning
Aaron Corporation, which has only one product, has provided the following data concerning its most recent month of operations:
Selling price | $102 |
---|---|
Units in beginning inventory | 0 |
Units produced | 4,800 |
Units sold | 3,980 |
Units in ending inventory | 820 |
Variable costs per unit: | |
---|---|
Direct materials | $ 18 |
Direct labor | $ 44 |
Variable manufacturing overhead | $ 7 |
Variable selling and administrative expense | $ 4 |
Fixed costs: | |
Fixed manufacturing overhead | $50,600 |
Fixed selling and administrative expense | $ 2,500 |
The total contribution margin for the month under variable costing is:
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