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Diego Company Direct materials Price/unit Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and

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Diego Company Direct materials Price/unit Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative exp $81 $20 $20 $4 $6 $936,000 $552,000 East West Common FS&AE Units produced Units sold #1 What is the unit product cost under variable costing? DM DL VMOH 2233 $20 $20 $4 $44 $210,000 $260,000 82,000 52,000 35,000 12,000 Units product Cost #2 What is the unit product cost under absorption costing? DM DL VMOH FMOH $20 $20 $4 18 $62 Units production cost #3 What is the company's total contribution margin under variable costing? Sales price Unit product cost VSA CM/unit Units sold Total CM $81 $44 $6 531 47,000 $1,457,000 Total $552,000 47,000

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