Question
Mason Corporation began operations at the beginning of the current year. One of the companys products, a refrigeration element, sells for $205 per unit. Information
Mason Corporation began operations at the beginning of the current year. One of the companys products, a refrigeration element, sells for $205 per unit. Information related to the current years activities follows. Variable costs per unit: Direct material $ 10 Direct labor 37 Manufacturing overhead 46 Annual fixed costs: Manufacturing overhead $ 600,000 Selling and administrative 860,000 Production and sales activity: Production (units) 24,000 Sales (units) 20,000 Mason carries its finished-goods inventory at the average unit cost of production and is subject to a 30 percent income tax rate. There was no work in process at year-end.
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