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Alpha Company manufactures a single product, the Whiz Mixer kitchen appliance, which it sells for $32 per unit. Information about costs, production, and sales for
Alpha Company manufactures a single product, the Whiz Mixer kitchen appliance, which it sells for $32 per unit. Information about costs, production, and sales for the month of March is provided below:
| Variable Costs | Fixed Costs | ||
| Direct materials | $10.00/unit | Manufacturing overhead | $23,000 |
| Direct labour | $4.50/unit | Selling and Administration | $10,000 |
| Variable manufacturing overhead | $2.50/unit | Units produced in period | 6,000 |
| Variable selling/administration | $2.00/unit | Units sold in period | 6,000 |
| Beginning inventory | $0 |
What is the gross margin for Alpha Company under an absorption costing system?
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