Question
Miller Company's total sales are $120,000. The company's direct labor cost is $15,000, which represents 30% of its total conversion cost and 40% of its
Miller Company's total sales are $120,000. The company's direct labor cost is $15,000, which represents 30% of its total conversion cost and 40% of its total prime cost. Its total selling and administrative expense is $18,000 and its only variable selling and administrative expense is a sales commission of 5% of sales. The company maintains no beginning or ending inventories and its manufacturing overhead costs are entirely fixed costs.
- Refer to Problem 1-22 on page 53. Part 1 of 7. Using the information given for Miller Company, what is the total manufacturing overhead cost?
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| A. | $35,000 |
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| B. | $22,500 |
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| C. | $72,500 |
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| D. | $43,500 |
- Refer to Problem 1-22 on page 53. Part 2 of 7. Using the information given for Miller Company, what is the total direct material cost?
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| A. | $35,000 |
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| B. | $72,500 |
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| C. | $22,500 |
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| D. | $43,500 |
- Refer to Problem 1-22 on page 5 Part 3 of 7. Using the information given for Miller Company, what is the total manufacturing cost?
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| A. | $72,500 |
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| B. | $74,500 |
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| C. | $76,500 |
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| D. | $78,500 |
- Refer to Problem 1-22 on page 53. Part 4 of 7. Using the information given for Miller Company, what is the total variable and selling cost?
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| A. | $4,000 |
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| B. | $5,000 |
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| C. | $6,000 |
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| D. | $7,000 |
- Refer to Problem 1-22 on page 53. Part 5 of 7. Using the information given for Miller Company, what is the total variable cost?
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| A. | $35,000 |
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| B. | $22,500 |
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| C. | $47,000 |
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| D. | $43,500 |
- Refer to Problem 1-22 on page 53. Part 6 of 7. Using the information given for Miller Company, what is the total fixed cost?
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| A. | $35,000 |
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| B. | $22,500 |
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| C. | $6,000 |
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| D. | $47,000 |
- Refer to Problem 1-22 on page 53. Part 7 of Using the information given for Miller Company, and your answer from part 5, what is the total contribution margin?
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| A. | $56,500 |
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| B. | $66,500 |
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| C. | $76,500 |
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| D. | $86,500 |
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Accounting What the Numbers Mean
Authors: David H. Marshall, Wayne W. McManus, Daniel F. Viele,
9th Edition
978-0-07-76261, 0-07-762611-7, 9780078025297, 978-0073527062
