Question
The accounting records for Grant Manufacturing Company included the following cost information relating to its first year of operations: Direct materials $ 24,500 Direct labor
The accounting records for Grant Manufacturing Company included the following cost information relating to its first year of operations:
| Direct materials | $ | 24,500 | ||||
| Direct labor | $ | 51,000 | ||||
| Fixed manufacturing overhead | $ | 39,000 | ||||
| Variable manufacturing overhead | $ | 21,000 | ||||
Assume the company produced 10,000 units of inventory and sold 7,100 of these units during the year for $121,410. Under variable costing, what is the contribution margin for the year? (Ignore selling and administrative expenses.)
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Financial Accounting Tools For Business Decision Making
Authors: Paul D. Kimmel
3rd Canadian Edition
0470836792, 978-0470836798
