A manufacturing company has provided the following data concerning its most recent month of operations: Sellin
A manufacturing company has provided the following data concerning its most recent month of operations: Sellin
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A manufacturing company has provided the following data concerning its most recent month of
operations:
Selling price
£176
Units in beginning inventory
0
Units produced
10,400
Units sold
9,800
Units in ending inventory
600
Variable costs per unit:
Direct materials
£ 24
Direct labour
£ 46
Variable manufacturing overhead
£ 4
Variable selling and administrative
£ 10
Fixed costs:
Fixed manufacturing overhead
£322,400
Fixed selling and administrative
£129,200
The total contribution margin for the month under the variable costing approach is:
A. £ 901600
B. £ 128,400
C. £ 499,800
D. £ 196.000
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