A company sells handmade candles at $12 per unit. Cost details are: ⚫ Direct materials = $3.00 • Direct labour = $1.20 . Variable overhead = $0.80 . Variable selling expense = $0.60 • Fixed factory overhead = $25,000 Fixed selling/admin expenses = $8,000 They expect to sell 6,000 units. Required: a. Variable product cost per unit b. Total variable cost per unit c. Contribution margin per unit d. Contribution margin ratio

A company sells handmade candles at $12 per unit. Cost details are: ⚫ Direct materials = $3.00 • Direct labour = $1.20 . Variable overhead = $0.80 . Variable selling expense = $0.60 • Fixed factory overhead = $25,000 Fixed selling/admin expenses = $8,000 They expect to sell 6,000 units. Required: a. Variable product cost per unit b. Total variable cost per unit c. Contribution margin per unit d. Contribution margin ratio

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 11MC: Total costs for ABC Distributing are $250,000 when the activity level is 10,000 units. If variable...

See similar textbooks

Similar questions

Total costs for ABC Distributing are $250,000 when the activity level is 10,000 units. If variable costs are $5 per unit, what are their fixed costs? $240,000 $200,000 $260,000 Their fixed costs cannot be determined from the information presented.
Suppose that Patron Company sells a product for $24. Unit costs are as follows: Direct materials $4.98 Direct labor 2.58 Variable factory overhead 1.00 Variable selling and administrative expense 2.00 Total fixed factory overhead is $30,000 per year, and total fixed selling and administrative expense is $11,664. Required: 1. Calculate the variable cost per unit and the contribution margin per unit. 2. Calculate the contribution margin ratio and the variable cost ratio. 3. Calculate the break-even units. 4. Prepare a contribution margin income statement at the break-even number of units. Enter all amounts as positive numbers.
Han Products manufactures 30,000 units of part S-6 each year for use on its production line. At this level of activity, the cost per unit for part S-6 is: Direct materials $ 5.10 Direct labor 7.00 Variable manufacturing overhead 2.40 Fixed manufacturing 18.00 overhead 32.50 Total cost per part An outside supplier has offered to sell 30,000 units of part S-6 each year to Han Products for $46.50 per part. If Han Products accepts this offer, the facilities now being used to manufacture part S-6 could be rented to another company at an annual rental of $767,000. However, Han Products has determined that two-thirds of the fixed manufacturing overhead being applied to part S-6 would continue even if part S-6 were purchased from the outside supplier.
what is the full cost of the product for trellis manufacturing ?? accounting
Suppose that Larimer Company sells a product for $20. Unit costs are as follows: Direct materials $1.70 Direct labor 1.60 Variable factory overhead 2.00 Variable selling and administrative expense 1.50 Total fixed factory overhead is $55,240 per year, and total fixed selling and administrative expense is $38,480. Required: 1. Calculate the variable cost per unit and the contribution margin per unit. 2. Calculate the contribution margin ratio and the variable cost ratio. 3. Calculate the break-even units. 4. Prepare a contribution margin income statement at the break-even number of units. Enter all amounts as positive numbers.
What is the fulll cost of the product?
??
Paney Company makes calendars. Information on cost per unit is as follows: Direct materials $1.50 Direct labor 1.20 Variable overhead 0.90 Variable marketing expense 0.40 Fixed marketing expense totaled $13,000 and fixed administrative expense totaled $35,000. The price per calendar is $10. What is the variable cost per unit? a. $4.00 b. $3.70 c. $4.60 d. $5.00 e. $1.30
A product cost is composed of the following
Please need answer the general accounting question
Use the information below to answer the following question(s). Franscioso Company sells several products. Information of average revenue and costs is as follows: Selling price per unit $28.50 Variable costs per unit: Direct material $5.25 Direct manufacturing labour $1.15 Manufacturing overhead $0.25 Selling costs $1.85 Annual fixed costs $110,000 The Franscioso Company contribution margin ratio is O A. 0.702:1. O B. 1.425:1. O C. 0.298:1. O D. 1.102:1. O E. 0.637:1.
Northenscold Company sells several products. Information of average revenue and costs are as follows: Selling price per unit $20.00 Variable costs per unit: Direct materials $4.00 Direct manufacturing labor $2.00 ABC cost per unit $0.50 Fixed MOH $0.40 Variable MOH $0.30 Selling costs $2.00 Annual fixed costs $96,000 Calculate the number of units Northenscold's must sell to yield a profit of $144,000. (round to nearest whole unit).