Question
Would you let me know if I computed this problem correctly for my job order costing project? What is the contribution margin for Job #1
Would you let me know if I computed this problem correctly for my job order costing project?
What is the contribution margin for Job #1 (assume that all selling and administrative cost and all manufacturing overhead costs are fixed.)?
My answer is $25,150.00.
I used Sales - variable cost ($32,000 - $6850).
Sales of $32,000 is from Sales Revenue on the Income Statement and the variable cost is from solving the question below.
What is the total variable cost incurred for Job #1 (assume that all selling and administrative cost and all manufacturing overhead costs are fixed.)?
$6850
This is the cost summary for job #1:
Cost Summary
Direct Materials $6,700.00
Direct Labor $150.00
Manufacturing Overhead $2,700.00
Total Product Cost $9,550.00
Unit Product Cost $9,550.00
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