$ Sales price per unit 51.00 Fixed costs (per month): Selling, general, and administrative (SG&A) 900,000 Manufacturing overhead 1,800,000 Variable costs (per unit): Direct labor 8.00 Direct materials 13.00 Manufacturing overhead 9.00 4.00 SG&A Number of units produced per month 300,000 units Required: Compute the amounts for each of the following assuming that both production levels are within the relevant range. (Do not round intermediate calculations. Round your answers to 2 decimal places.) 300,000 units 400,000 units a. Prime cost per unit. b. Contribution margin per unit. c. Gross margin per unit. d. Conversion cost per unit. e. Variable cost per unit. f. Full absorption cost per unit. g. Variable production cost per unit. h. Full cost per unit.

$ Sales price per unit 51.00 Fixed costs (per month): Selling, general, and administrative (SG&A) 900,000 Manufacturing overhead 1,800,000 Variable costs (per unit): Direct labor 8.00 Direct materials 13.00 Manufacturing overhead 9.00 4.00 SG&A Number of units produced per month 300,000 units Required: Compute the amounts for each of the following assuming that both production levels are within the relevant range. (Do not round intermediate calculations. Round your answers to 2 decimal places.) 300,000 units 400,000 units a. Prime cost per unit. b. Contribution margin per unit. c. Gross margin per unit. d. Conversion cost per unit. e. Variable cost per unit. f. Full absorption cost per unit. g. Variable production cost per unit. h. Full cost per unit.

Name: Sales price per unit.51.00Fixed costs (per month):Selling, general, a
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Description: Sales price per unit.51.00Fixed costs (per month):Selling, general, and administrative (SG&A)900,000Manufacturing overhead1,800,000Variable costs (per unit):Direct labor8.00Direct materials13.00Manufacturing overhead9.004.00SG&ANumber of units produ

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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Concept explainers

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.

Topic Video

Question

Sales price per unit.
51.00
Fixed costs (per month):
Selling, general, and administrative (SG&A)
900,000
Manufacturing overhead
1,800,000
Variable costs (per unit):
Direct labor
8.00
Direct materials
13.00
Manufacturing overhead
9.00
4.00
SG&A
Number of units produced per month.
300,000 units
Required:
Compute the amounts for each of the following assuming that both production levels are within the relevant range. (Do not round
intermediate calculations. Round your answers to 2 decimal places.)
300,000 units 400,000 units
a.
Prime cost per unit.
b. Contribution margin per unit.
C. Gross margin per unit.
d.
Conversion cost per unit.
e. Variable cost per unit.
f.
Full absorption cost per unit.
g. Variable production cost per unit.
h. Full cost per unit.
$

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