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Product X Product Y Total Sales volume (units) 400 600 1,000 Revenue $60,000 $60,000 $120,000 Variable costs Direct materials $25,000 $15,000 $40,000 Direct labor $15,000
Product X | Product Y | Total | |
Sales volume (units) | 400 | 600 | 1,000 |
Revenue | $60,000 | $60,000 | $120,000 |
Variable costs | |||
Direct materials | $25,000 | $15,000 | $40,000 |
Direct labor | $15,000 | $10,000 | $25,000 |
Contribution margin | $20,000 | $35,000 | $55,000 |
Fixed costs | $50,000 | ||
Profit | $5,000 |
Use direct labor dollars as the cost driver.
Compute allocated fixed costs for Product X:
Group of answer choices
$50,000
$30,000
$45,000
$20,000
$2.00
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