Hessell Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $ 135 Units in beginning inventory 0 Units produced 2,700 Units sold 2,210 Units in ending inventory 490 Variable costs per unit: Direct materials $ 37 Direct labor $ 27 Variable manufacturing overhead $ 7 Variable selling and administrative expense $ 8 Fixed costs: Fixed manufacturing overhead $59,400 Fixed selling and administrative expense $6,630 The total gross margin for the month under the absorption costing approach is:
Hessell Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $ 135 Units in beginning inventory 0 Units produced 2,700 Units sold 2,210 Units in ending inventory 490 Variable costs per unit: Direct materials $ 37 Direct labor $ 27 Variable manufacturing overhead $ 7 Variable selling and administrative expense $ 8 Fixed costs: Fixed manufacturing overhead $59,400 Fixed selling and administrative expense $6,630 The total gross margin for the month under the absorption costing approach is:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Hessell Corporation, which has only one product, has provided the following data concerning its most recent month of operations:
| Selling price | $ 135 |
|---|---|
| Units in beginning inventory | 0 |
| Units produced | 2,700 |
| Units sold | 2,210 |
| Units in ending inventory | 490 |
| Variable costs per unit: | |
|---|---|
| Direct materials | $ 37 |
| Direct labor | $ 27 |
| Variable manufacturing |
$ 7 |
| Variable selling and administrative expense | $ 8 |
| Fixed costs: | |
| Fixed manufacturing overhead | $59,400 |
| Fixed selling and administrative expense | $6,630 |
The total gross margin for the month under the absorption costing approach is:
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