Westfield Manufacturing reports the following cost data for its single product. The company regularly sells 18,000 units of its product at a price of $75 per unit. Direct materials: $14.50 per unit Direct labor: $16.80 per unit Overhead costs for the year: Variable overhead: $4.20 per unit Fixed overhead per year: $54,000 Selling and administrative costs for the year: Variable: $3.30 per unit Fixed: $72,400 Normal production level (in units): 18,000 units Compute gross margin under absorption costing.

Westfield Manufacturing reports the following cost data for its single product. The company regularly sells 18,000 units of its product at a price of $75 per unit. Direct materials: $14.50 per unit Direct labor: $16.80 per unit Overhead costs for the year: Variable overhead: $4.20 per unit Fixed overhead per year: $54,000 Selling and administrative costs for the year: Variable: $3.30 per unit Fixed: $72,400 Normal production level (in units): 18,000 units Compute gross margin under absorption costing.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 1PB: Bobcat uses a traditional cost system and estimates next years overhead will be $800.000, as driven...

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