Question
TB MC Qu. 7-98 (Static) Aaron Corporation, which has... Aaron Corporation, which has only one product, has provided the following data concerning its most recent
TB MC Qu. 7-98 (Static) Aaron Corporation, which has...
Aaron Corporation, which has only one product, has provided the following data concerning its most recent month of operations:
| Selling price | $ 90 |
|---|---|
| Units in beginning inventory | 0 |
| Units produced | 3,400 |
| Units sold | 3,000 |
| Units in ending inventory | 400 |
| Variable costs per unit: | |
|---|---|
| Direct materials | $ 21 |
| Direct labor | $ 38 |
| Variable manufacturing overhead | $ 6 |
| Variable selling and administrative expense | $ 4 |
| Fixed costs: | |
| Fixed manufacturing overhead | $54,400 |
| Fixed selling and administrative expense | $ 3,000 |
The total gross margin for the month under the absorption costing approach is:
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Intermediate Accounting
Authors: James D. Stice, Earl K. Stice, Fred Skousen
17th Edition
032459237X, 978-0324592375
