Krepps Corporation produces a single product. Last year, Krepps manufactured 33,930 units and sold 28,300 units. Production costs for the year were as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Sales totaled $1,287,650 for the year, variable selling and administrative expenses totaled $164,140, and fixed selling and administrative expenses totaled $206,973. There was no beginning inventory. Assume that direct labor is a variable cost. The contribution margin per unit was: (Round your Intermediete calculations to 2 decimal places) Multiple Choice $19.50 per unit $24.20 per unit $18.40 per unit $288,405 $145,899 $288,405 $542,880 $13.90 per unit

Krepps Corporation produces a single product. Last year, Krepps manufactured 33,930 units and sold 28,300 units. Production costs for the year were as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Sales totaled $1,287,650 for the year, variable selling and administrative expenses totaled $164,140, and fixed selling and administrative expenses totaled $206,973. There was no beginning inventory. Assume that direct labor is a variable cost. The contribution margin per unit was: (Round your Intermediete calculations to 2 decimal places) Multiple Choice $19.50 per unit $24.20 per unit $18.40 per unit $288,405 $145,899 $288,405 $542,880 $13.90 per unit

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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Grainger Company produces only one product and sells that product for $90 per unit. Cost information for the product is as follows: Direct Material $15 per UnitDirect Labor $24 per UnitVariable Overhead $4 per UnitFixed Overhead $27,200 Selling expenses are $4 per unit and are all variable. Administrative expenses of $16,000 are all fixed. Grainger produced 4,000 units; sold 3,200; and had no beginning inventory. A. Compute net income under i. Absorption Costing $ ii. Variable Costing $ B. Which costing method provide higher net income? By how much? The_____method provided more net income by $_____ .
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Grainger Company produces only one product and sells that product for $90 per unit. Cost information for the product is as follows: Direct Material $16 per Unit Direct Labor $26 per Unit Variable Overhead $5 per Unit Fixed Overhead $26,800 Selling expenses are $4 per unit and are all variable. Administrative expenses of $16,000 are all fixed. Grainger produced 4,000 units; sold 3,200; and had no beginning inventory. A. Compute net income under i. Absorption Costing $ ii. Variable Costing B. Which costing method provide higher net income? By how much? The absorption costing ✔method provided more net income by $
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