Answer:
Results are below.
Explanation:
Giving the following information:
Units produced and sold= 900
Sales price (per unit) $448
Manufacturing costs:
Fixed overhead 50,400
Direct labor (per unit) 35
Direct materials (per unit) 112
Variable overhead (per unit) 70 (for the month)
Marketing and administrative costs:
Fixed costs (for the month) 67,500
Variable costs (per unit) 14
a. Variable manufacturing cost= 35 + 112 + 70= $217
b. Total cost:
Total variable cost= (217 + 14)*900= 207,900
Total fixed cost= 50,400 + 67,500= 117,900
Total cost= $325,800
Total cost per unit= 325,800/900= $362
c. Total variable cost= 217 + 14= $231
d. The absorption costing method includes all costs related to production, both fixed and variable.
Absorption cost= 217 + (50,400/900)= $273
e. Prime cost= direct material + direct labor
Prime cost= 112 + 35= $147
f. Conversion cost= direct labor + unitary variable overhead
Conversion cost= 35 + 70= $105
g. Profit margin= selling price - total unitary cost
Profit margin= 448 - 362= $86
h. Contribution margin per unit= selling price - total unitary variable cost
Contribution margin per unit= 448 - 231= $217
j. Gross margin per unit= Selling price - absorption cost per unit
Gross margin per unit= 448 - 273= $175
