Aaron Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $ 90 Units in beginning inventory 0 Units produced 3,400 Units sold 3, 000 Units in ending inventory 400 Variable costs per unit: Direct materials $ 21 Direct labor $ 38 Variable manufacturing overhead $ 6 Variable selling and administrative expense $ 4 Fixed costs: Fixed manufacturing overhead $54,400 Fixed selling and administrative expense $ 3,000 The total gross margin for the month under the absorption costing approach is: Multiple Choice $12,000 $59,400 $63,000 $ 27,000
Aaron Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $ 90 Units in beginning inventory 0 Units produced 3,400 Units sold 3, 000 Units in ending inventory 400 Variable costs per unit: Direct materials $ 21 Direct labor $ 38 Variable manufacturing overhead $ 6 Variable selling and administrative expense $ 4 Fixed costs: Fixed manufacturing overhead $54,400 Fixed selling and administrative expense $ 3,000 The total gross margin for the month under the absorption costing approach is: Multiple Choice $12,000 $59,400 $63,000 $ 27,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Hal.6
Transcribed Image Text:Aaron Corporation, which has only one product, has provided the following data
concerning its most recent month of operations: Selling price $ 90 Units in
beginning inventory 0 Units produced 3,400 Units sold 3, 000 Units in ending
inventory 400 Variable costs per unit: Direct materials $ 21 Direct labor $ 38
Variable manufacturing overhead $ 6 Variable selling and administrative expense
$ 4 Fixed costs: Fixed manufacturing overhead $54,400 Fixed selling and
administrative expense $ 3,000 The total gross margin for the month under the
absorption costing approach is: Multiple Choice $12,000 $59, 400 $63,000 $
27,000
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