In: Finance
Miller Company’s total sales are $120,000. The
company’s direct labor cost is $15,000, which represents 30% of its
total conversion cost and 40% of its total prime cost. Its total
selling and administrative expense is $18,000 and its only variable
selling and administrative expense is a sales commission of 5% of
sales. The company maintains no beginning or ending inventories and
its manufacturing overhead costs are entirely fixed
costs.
Required:
1. What is the total manufacturing overhead
cost?
2. What is the total direct materials cost?
3. What is the total manufacturing cost?
4. What is the total variable selling and
administrative cost?
5. What is the total variable cost?
6. What is the total fixed cost?
7. What is the total contribution margin?