Chance, Inc. sold 3,000 units of itsproduct at a price of $72 per unit. Totalvariable cost per unit is $51, consistingof $32 in variable production cost and$19 in variable selling andadministrative cost. Compute themanufacturing margin for thecompany under variable costing.A.B.C.D.E.$96,000$63,000$120,000$216,000($90,000)Training

Income statement is a financial statement that shows the profitability, total revenue and total…

Answered: Chance, Inc. sold 3,000 units of its…

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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Accounting.
Mallard Corporation uses the product cost method of product pricing. Below is cost information for the production and sale of 45,000 units of its sole product. Mallard desires a profit equal to a 12% return on invested assets of $800,000. Fixed factory overhead cost Fixed selling and administrative costs Variable direct materials cost per unit Variable direct labor cost per unit Variable factory overhead cost per unit Variable selling and administrative cost per unit 0.90 The cost per unit for the production of the company's product is Oa. $13.15 Ob. $15.40 Oc. $15.75 Od. $17.22 $82,000 45,000 5.50 7.65 2.25
Puritan Apparels is a clothing retailer. Unit costs associated with one of its products, Product DCF 130, are as follows: Direct materials $110 Direct manufacturing labor Variable manufacturing overhead 20 75 Fixed manufacturing overhead Sales commissions (2% of sales) Administrative salaries 35 14 28 Total $282 ト What are the indirect nonmanufacturing variable costs per unit associated with Product DCF130? O A. $14 O B. $42 OC. $254 OD. $130
Wang Company manufactures and sells a single product that sells for $640 per unit; variable costs are $352 per unit. Annual fixed costs are $985,500. Current sales volume is $4,390,000. Management targets an annual income of $1,315,000. Compute the unit sales to earn the target income. Select one: a. 6.164. Ob. 7,988. O c. 19,383. O d. 3,422. Oe. 4,934.
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Wilco reports the following data for the most recent period: Variable MOH $40,000 Direct Materials $100,000 Direct Labor $80,000 Fixed MOH $20,000 Variable Admin Costs $20,000 Fixed Admin Costs $4,000 Units Produced 20,000 10,000 Units Sold Wilco's Variable Manufacturing Cost per Unit is what amount? ○ $22 per unit $12 per unit ○ $24 per unit O $11 per unit
Kingston Company sells its product for $300 per unit. The company's accountant provided the following cost information: Manufacturing costs Selling costs Administrative costs $20,300 + 46% of sales $13,100+ 23% of sales $25,400+ 8% of sales. What is Kingston Company's contribution margin ratio?
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Assume the following information for a company that produced 10,000 units and sold 9,000 units during its first year of operations: Per Unit Per Year Selling price $ 200 Direct materials $ 69 Direct labor $ 50 Variable manufacturing overhead $ 12 Sales commission $ 8 Fixed manufacturing overhead $ 300,000 Using variable costing, what is the company's contribution margin? Multiple Choice • $549,000 • $423,000 • $351,000 • $621,000
Lattimer Company had the following results of operations for the past year: Contribution margin income statement Sales (18,000 units) Variable costs Direct materials Direct labor Overhead Contribution margin Fixed costs Fixed overhead Fixed selling and administrative expenses Income Multiple Choice O $6,000 profit. Per Unit $ 12.00 $4,000 loss. 1.50 4.00 1.00 5.50 1.00 1.40 $ 3.10 A foreign company offers to buy 6,000 units at $7.50 per unit. In addition to variable costs, selling these units would add a $0.25 selling expense for export fees. Lattimer's annual production capacity is 28,000 units. If Lattimer accepts this additional business, the special order will yield a: Annual Total $ 216,000 27,000 72,000 18,000 99,000 18,000 25, 200 $ 55,800
Dotterel Corporation uses the variable cost method of product pricing. Below is cost information for the production and sale of 35,000 units of its sole product. Dotterel desires a profit equal to an 11.2% return on invested assets of $350,000. Fixed factory overhead cost $105,000 Fixed selling and administrative costs 35,000 Variable direct materials cost per unit 4.34 Variable direct labor cost per unit 5.18 Variable factory overhead cost per unit 0.98 Variable selling and administrative cost per unit 0.70 The markup percentage for the sale of Dotterel's product is a.11.2% b.45.7% c.5.6% d.14.0%
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