Universal Specialty Group produces a sports theme chair. The following informationhas been provided by management:elling price$550 per unit Variable manufacturing costs $50 per unit$90 per unit Variable administrative costsirect materialsudget production 12,000 units Fixed manufacturing overhead $60 per unitctual sales$25 per unit10,000 units Fixed administrative costs$200,000 per annumVariable manufacturing costs includes direct labour and variable overhead. Actualproduction is the same as budget production.Required:(a) Compute the Gross Profit under absorption costing.(b) Compute the Contribution Margin and Net Profit under variable costing.(c) Compute the Throughput Margin and the Net Profit under throughput costing.

Name: Universal Specialty Group produces a sports theme chair. The followin
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Description: Universal Specialty Group produces a sports theme chair. The following informationhas been provided by management:elling price$550 per unit Variable manufacturing costs $50 per unit$90 per unit Variable administrative costsirect materialsudget produ

1. Gross Profit = 3500000 2. Contribution Margin = 4100000 Net Profit = 2880000…

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Accounting

Universal Specialty Group produces a sports theme chair. The following information has been provided by management: elling price $550 per unit Variable manufacturing costs $50 per unit $90 per unit Variable administrative costs udget production 12,000 units Fixed manufacturing overhead $60 per unit 10,000 units Fixed administrative costs irect materials $25 per unit ctual sales $200,000 per annum Variable manufacturing costs includes direct labour and variable overhead. Actual production is the same as budget production. Required: (a) Compute the Gross Profit under absorption costing. (b) Compute the Contribution Margin and Net Profit under variable costing. (c) Compute the Throughput Margin and the Net Profit under throughput costing.

Universal Specialty Group produces a sports theme chair. The following information has been provided by management: elling price $550 per unit Variable manufacturing costs $50 per unit $90 per unit Variable administrative costs udget production 12,000 units Fixed manufacturing overhead $60 per unit 10,000 units Fixed administrative costs irect materials $25 per unit ctual sales $200,000 per annum Variable manufacturing costs includes direct labour and variable overhead. Actual production is the same as budget production. Required: (a) Compute the Gross Profit under absorption costing. (b) Compute the Contribution Margin and Net Profit under variable costing. (c) Compute the Throughput Margin and the Net Profit under throughput costing.

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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