Question
In: Accounting
Columbia Products produced and sold 1,400 units of the company’s only product in March. You have...
Columbia Products produced and sold 1,400 units of the company’s
only product in March. You have collected the following information
from the accounting records:
| Sales price (per unit) | $ | 124 |
| Manufacturing costs: | ||
| Fixed overhead (for the month) | 14,000 | |
| Direct labor (per unit) | 9 | |
| Direct materials (per unit) | 33 | |
| Variable overhead (per unit) | 23 | |
| Marketing and administrative costs: | ||
| Fixed costs (for the month) | 22,400 | |
| Variable costs (per unit) | 4 | |
Required:
a. Compute the following:
variable manufacturing cost per unit
full cost per unit
variable cost per unit
full absorption cost per unit
prime cost per unit
conversion cost per unit
profit margin per unit
contribution margin per unit
gross margin per unit
Solutions
Expert Solution
Fixed manufacturing overhead per unit = Fixed overhead / units
= $14,000 / 1,400 units
= $10
Fixed marketing and administrative costs = Fixed costs / units
= $22,400 / 1,400 units
= $16
Variable manufacturing cost per unit = Direct labor + Direct material + Variable manufacturing overhead
= $9 + $33 + $23
= $65
Full cost per unit = Total variable cost per unit + Total fixed cost per unit
= ($9 + 33 + 23 + $4) + ($10 + $16)
= $69 + $26
= $95
Variable cost per unit = Direct labor + Direct materials + Variable manufacturing overhead + Variable marketing and administrative costs
= $9 + $33 + $23 + $4
= $69
Full absorption cost per unit = Direct labor + Direct materials + Variable manufacturing overhead + Fixed manufacturing overhead
= $9 + $33 + $23 + $10
= $75
Prime cost per unit = Direct labor + Direct materials
= $9 + $33
= $42
Conversion cost per unit = Direct labor + Variable manufacturing overhead + Fixed manufacturing overhead
= $9 + $23 + $10
= $42
Profit margin per unit = Sales price per unit - Full cost per unit
= $124 - $95
= $29
Contribution margin per unit = Sales price - variable cost
= $124 - $69
= $55
Gross margin per unit = Sales price - Full absorption cost
= $124 - $75
= $49
ekkarill92 answered 2 years agoRelated Solutions
Columbia Products produced and sold 1,400 units of the company’s only product in March. You have...
Columbia Products
produced and sold 1,400 units of the company’s only product in
March. You have collected the following information from the
accounting records:
Sales price (per
unit)
$
133
Manufacturing
costs:
Fixed overhead
(for the month)
16,800
Direct labor
(per unit)
10
Direct materials
(per unit)
33
Variable
overhead (per unit)
24
Marketing and
administrative costs:
Fixed costs (for
the month)
21,000
Variable costs
(per unit)
4
Required:
a.
Compute the following:
1.
Variable manufacturing cost...
Columbia Products produced and sold 900 units of the company’s only product in March. You have...
Columbia Products produced and sold 900 units of the company’s
only product in March. You have collected the following information
from the accounting records: Sales price (per unit) $ 448
Manufacturing costs: Fixed overhead (for the month) 50,400 Direct
labor (per unit) 35 Direct materials (per unit) 112 Variable
overhead (per unit) 70 Marketing and administrative costs: Fixed
costs (for the month) 67,500 Variable costs (per unit) 14 Required
Compute: Variable manufacturing cost per unit. Full cost per unit.
Variable...
olumbia Products produced and sold 1,300 units of the company’s only product in March. You have...
olumbia Products
produced and sold 1,300 units of the company’s only product in
March. You have collected the following information from the
accounting records:
Sales price (per
unit)
$
127
Manufacturing
costs:
Fixed overhead
(for the month)
13,000
Direct labor
(per unit)
6
Direct materials
(per unit)
33
Variable
overhead (per unit)
23
Marketing and
administrative costs:
Fixed costs (for
the month)
19,500
Variable costs
(per unit)
4
Required:
a.
Compute the following:
1.
Variable manufacturing cost per...
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16.000 units
Sale price per unit
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Variable cost per unit
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Fixed cost per unit
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