Gusteau's manufactures high-quality boxes of flavored seltzer which it sells for $14 per box. Below is some information related to Gusteau's capacity and budgeted fixed manufacturing costs for 2019: Denominator-Level Capacity Concept Theoretical Capacity Practical Capacity Normal Capacity Master Budget Capacity Budgeted Fixed Period Manufacturing Overhead per $1,750,000 $1,750,000 $1,750,000 $1,750,000 Production Production per Period 362 310 Days of 310 310 22 16 16 Hours of 16 per Day Boxes per Hour 300 250 175 200 Production during 2019 was 990,000 boxes of flavored seltzer, with 15,000 remaining in ending inventory at 12/31/19. Assume beginning inventory is zero. Variable manufacturing costs were $1.78 per unit (there are no variable cost variances). Actual fixed manufacturing overhead costs were $1,750,000, the same as budgeted. Fixed manufacturing overhead cost variances are written off to cost of goods sold in the period in which they occur. (Note: Round interim calculations to 2 decimal places.) What is the gross margin under normal capacity?

Gusteau's manufactures high-quality boxes of flavored seltzer which it sells for $14 per box. Below is some information related to Gusteau's capacity and budgeted fixed manufacturing costs for 2019: Denominator-Level Capacity Concept Theoretical Capacity Practical Capacity Normal Capacity Master Budget Capacity Budgeted Fixed Period Manufacturing Overhead per $1,750,000 $1,750,000 $1,750,000 $1,750,000 Production Production per Period 362 310 Days of 310 310 22 16 16 Hours of 16 per Day Boxes per Hour 300 250 175 200 Production during 2019 was 990,000 boxes of flavored seltzer, with 15,000 remaining in ending inventory at 12/31/19. Assume beginning inventory is zero. Variable manufacturing costs were $1.78 per unit (there are no variable cost variances). Actual fixed manufacturing overhead costs were $1,750,000, the same as budgeted. Fixed manufacturing overhead cost variances are written off to cost of goods sold in the period in which they occur. (Note: Round interim calculations to 2 decimal places.) What is the gross margin under normal capacity?

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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