Assume a manufacturing company provides the following information from its master budget for the month of May:- **Unit sales:** 7,900- **Selling price per unit:** $35- **Direct materials cost per unit:** $12- **Direct labor cost per unit:** $10- **Predetermined overhead rate (based on direct labor dollars):** 80%If the company maintains no beginning or ending inventories, what is the budgeted gross margin for May?### Multiple Choice- ○ $31,600- ○ $39,500- ○ $7,900- ○ $29,500

Overhead cost per unit = Direct labor cost x Predetermined overhead rate = $10 x 80% = $8 Gross margin per unit = Selling price - Total unit cost = $35 - ($12 + $10 + $8) = $5Budgeted Gross margin = Unit sales x Unit Gross margin = 7,900 x $5 = $39,500 (Answer)

Business

Accounting

Assume a manufacturing company provides the following information from its master budget for the month of May: Unit sales Selling price per unit Direct materials cost per unit Direct labor cost per unit Predetermined overheard rate (based on direct labor dollars) 7,900 $ 35 $ 12 $ 10 80% If the company maintains no beginning or ending inventories, what is the budgeted gross margin for May? Multiple Choice $31,600 $39,500 $7,900 $29,500

Assume a manufacturing company provides the following information from its master budget for the month of May: Unit sales Selling price per unit Direct materials cost per unit Direct labor cost per unit Predetermined overheard rate (based on direct labor dollars) 7,900 $ 35 $ 12 $ 10 80% If the company maintains no beginning or ending inventories, what is the budgeted gross margin for May? Multiple Choice $31,600 $39,500 $7,900 $29,500

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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