Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Sales commissions Cost per Unit $ 7.25 $ 3.35 $ 1.30 $ 1.05 $ 0.60 Cost per Period $ 23,900 Variable administrative expense Fixed selling and administrative expense $ 8,300 if the selling price was $27.60 per unit, the contribution margin per unit sold last month was closest to:
Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Sales commissions Cost per Unit $ 7.25 $ 3.35 $ 1.30 $ 1.05 $ 0.60 Cost per Period $ 23,900 Variable administrative expense Fixed selling and administrative expense $ 8,300 if the selling price was $27.60 per unit, the contribution margin per unit sold last month was closest to:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Transcribed Image Text:The Sales Manager at Elvin Manufacturing would like to determine profitability of the products they
sell. The Accountants have provided her the following cost information from last month: Direct
materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Sales
commissions Multiple Choice O $14.05 Cost per Unit $ 7.25 $ 3.35 $ 1.30 Variable administrative
expense Fixed selling and administrative expense If the selling price was $27.60 per unit, the
contribution margin per unit sold last month was closest to: $9.18 $ 1.05 $ 0.60 Cost per Period $
23,900 B $ 8,300

Transcribed Image Text:The Sales Manager at Elvin Manufacturing would like to determine profitability of the products they sell. The Accountants have provided her the following
cost information from last month:
Direct materials
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
Sales commissions
Multiple Choice
$14.05
Cost per Unit
$7.25
$ 3.35
$ 1.30
5918
$ 1.05
$ 0.60
Variable administrative expense
Fixed selling and administrative expense
If the selling price was $27.50 per unit, the contribution margin per unit sold last month was closest to:
Cost per Period
$ 23,900
$ 8,300
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