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Oak Mart, a producer of solid oak tables, reports the following data from its second year of business. Sales price per unit $ 310 per
Oak Mart, a producer of solid oak tables, reports the following data from its second year of business.
Sales price per unit | $ | 310 | per unit |
Units produced this year | 105,000 | units | |
Units sold this year | 108,250 | units | |
Units in beginning-year inventory | 3,250 | units | |
Beginning inventory costs | |||
Variable (3,250 units $135) | $ | 438,750 | |
Fixed (3,250 units $70) | 227,500 | ||
Total | $ | 666,250 | |
Manufacturing costs this year | |||
Direct materials | $ | 46 | per unit |
Direct labor | $ | 64 | per unit |
Overhead costs this year | |||
Variable overhead | $ | 3,400,000 | |
Fixed overhead | $ | 7,600,000 | |
Selling and administrative costs this year | |||
Variable | $ | 1,400,000 | |
Fixed |
Sales | $33,557,500t | |
Less: Variable costsselected answer correct | ||
Beginning inventory: | ||
Variable costs | ||
Manufacturing costs this year | ||
Direct materials | 4,830,000 | |
Direct labor | 6,720,000 | |
Variable overhead costs | 3,400,000 | |
Total variable costs available | 14,950,000 | |
Less: Ending finished goods inventory | ||
Variable cost of goods sold | ||
Variable selling and administrative expenses | 1,400,000 | |
Total variable costs | 1,400,000 | |
Contribution margin | ||
Less: Fixed expenses | ||
Fixed selling and administrative costs | $4,200,000 | |
Fixed overhead costs | 7,600,000 | |
Total fixed expenses | 11,800,000 | |
Net income (loss) |
can't get variable cost and variable cost of goods sold
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