Ask Question
20 September, 15:21

anufacturing's cost accountant has provided you with the following information for January operations. Direct materials $ 31 per unit Fixed manufacturing overhead costs $ 225,000 Sales price $ 205 per unit Variable manufacturing overhead $ 20 per unit Direct labor $ 34 per unit Fixed marketing and administrative costs $ 200,000 Units produced and sold 6,000 Variable marketing and administrative costs $ 8 per unit Required: a. Determine the variable cost per unit. b. Determine the variable manufacturing cost per unit. c. Determine the full absorption cost per unit. (Round your answer to 2 decimal places.) d. Determine the full cost per unit. (Round your answer to 2 decimal places.) e. Determine the profit margin per unit. (Round intermediate calculations and final answer to 2 decimal places.) f. Determine the gross margin per unit. (Round intermediate calculations and final answer to 2 decimal places.) g. Determine the contribution margin per unit.

+5
Answers (1)
  1. 20 September, 15:51
    0
    Instructions are listed below.

    Explanation:

    Giving the following information:

    Direct materials $ 31 per unit

    Fixed manufacturing overhead costs $ 225,000

    Sales price $ 205 per unit

    Variable manufacturing overhead $20 per unit

    Direct labor $ 34 per unit

    Fixed marketing and administrative costs $ 200,000

    Units produced and sold 6,000

    Variable marketing and administrative costs $ 8

    A) Total variable cost per unit = direct material + direct labor + variable overhead + variable marketing and administrative

    Total variable cost per unit = 31 + 34 + 20 + 8 = $93

    B) Variable manufacturing cost = direct material + direct labor + variable overhead = 31 + 34 + 20 = $85

    C) Total absorption cost per unit = direct material + direct labor + total overhead = 31 + 34 + (225,000/6,000 + 20) = $122.5

    D) Total unitary cost = total cost / Q

    Total unitary cost = total variable cost + (fixed overhead + Fixed marketing and administrative costs) / Q = 93 + (225,000 + 200,000) / 6,000 = $163.83

    E) Profit margin = selling price - total unitary cost = 205 - 163.83 = $41.17

    F) Gross margin = selling price - unitary cost (absorption)

    Gross margin = 205 - 122.5 = $82.5

    G) Contribution margin per unit = selling price - unitary variable cost

    CM per unit = 205 - 85 = $120
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “anufacturing's cost accountant has provided you with the following information for January operations. Direct materials $ 31 per unit Fixed ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers