ABC Manufacturing produces a single product with the following data for March: • Selling price: $200/unit Beginning inventory: 0 units ⚫ Units produced: 3,000 Units sold: 2,800 ⚫ Ending inventory: 200 units Variable costs per unit: ⚫ Direct materials: $60 • Direct labor: $25 ⚫ Variable manufacturing overhead: $15 ⚫ Variable selling and administrative: $12 Fixed costs: ⚫ Fixed manufacturing overhead: $120,000 ⚫ Fixed selling and administrative: $25,000 Calculate the total gross margin under absorption costing. A. $84,000 B. $98,000 C. $168,000 D. $126,000
ABC Manufacturing produces a single product with the following data for March: • Selling price: $200/unit Beginning inventory: 0 units ⚫ Units produced: 3,000 Units sold: 2,800 ⚫ Ending inventory: 200 units Variable costs per unit: ⚫ Direct materials: $60 • Direct labor: $25 ⚫ Variable manufacturing overhead: $15 ⚫ Variable selling and administrative: $12 Fixed costs: ⚫ Fixed manufacturing overhead: $120,000 ⚫ Fixed selling and administrative: $25,000 Calculate the total gross margin under absorption costing. A. $84,000 B. $98,000 C. $168,000 D. $126,000
Essentials of Business Analytics (MindTap Course List)
2nd Edition
ISBN:9781305627734
Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Chapter12: Integer Linear Optimization_models
Section: Chapter Questions
Problem 6P: Hart Manufacturing makes three products. Each product requires manufacturing operations in three...
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Abc manufacturing produces a single product solve this accounting questions
Transcribed Image Text:ABC Manufacturing produces a single product with the following data for March:
•
Selling price: $200/unit
Beginning inventory: 0 units
⚫ Units produced: 3,000
Units sold: 2,800
⚫ Ending inventory: 200 units
Variable costs per unit:
⚫ Direct materials: $60
•
Direct labor: $25
⚫ Variable manufacturing overhead: $15
⚫ Variable selling and administrative: $12
Fixed costs:
⚫ Fixed manufacturing overhead: $120,000
⚫ Fixed selling and administrative: $25,000
Calculate the total gross margin under absorption costing.
A. $84,000
B. $98,000
C. $168,000
D. $126,000
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