Krepps Corporation produces a single product. Last year, Krepps manufactured 28,000 units and sold 22,500 units. Production costs for the year were as follows: Direct materials Direct labor $229,600 $134,400 Variable manufacturing overhead $215,600 Fixed manufacturing overhead $336,000 Sales totaled $1,046,250 for the year, variable selling and administrative expenses totaled $117,000, and fixed selling and administrative expenses totaled $201,600. There was no beginning inventory. Assume that direct labor is a variable cost. The contribution margin per unit was

Cornerstones of Cost Management (Cornerstones Series)
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Chapter2: Basic Cost Management Concepts
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Problem 22E: Ellerson Company provided the following information for the last calendar year: During the year,...
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Krepps Corporation produces a single product. Last year, Krepps
manufactured 28,000 units and sold 22,500 units. Production costs for the year
were as follows:
Direct materials
Direct labor
$229,600
$134,400
Variable manufacturing overhead $215,600
Fixed manufacturing overhead $336,000
Sales totaled $1,046,250 for the year, variable selling and administrative
expenses totaled $117,000, and fixed selling and administrative expenses
totaled $201,600. There was no beginning inventory. Assume that direct labor
is a variable cost.
The contribution margin per unit was
Transcribed Image Text:Krepps Corporation produces a single product. Last year, Krepps manufactured 28,000 units and sold 22,500 units. Production costs for the year were as follows: Direct materials Direct labor $229,600 $134,400 Variable manufacturing overhead $215,600 Fixed manufacturing overhead $336,000 Sales totaled $1,046,250 for the year, variable selling and administrative expenses totaled $117,000, and fixed selling and administrative expenses totaled $201,600. There was no beginning inventory. Assume that direct labor is a variable cost. The contribution margin per unit was
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