Question
In: Accounting
Miller Company’s total sales are $126,000. The company’s direct labor cost is $15,120, which represents 30%...
Miller Company’s total sales are $126,000. The company’s direct labor cost is $15,120, which represents 30% of its total conversion cost and 40% of its total prime cost. Its total selling and administrative expense is $18,900 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?
Solutions
Expert Solution
| Req 1. | |||||
| Direct labour | 15120 | ||||
| Direct labor as % of Conversion Cost | 30% | ||||
| Total conversion cost (15120/30 *100) | 50400 | ||||
| Less: Labour cost | 15120 | ||||
| Manufacturing overheads cost (Fixed) | 35280 | ||||
| Req 2. | |||||
| Direct labour | 15120 | ||||
| Direct labor as % of Prime cost | 40% | ||||
| Total Prime cost (15120/40 *100) | 37800 | ||||
| Less: Labour cost | 15120 | ||||
| Material cost consumed | 22680 | ||||
| Req 3. | |||||
| Total Manufacturing cost: | |||||
| Material | 22680 | ||||
| Labor | 15120 | ||||
| Manufacturing overheads | 35280 | ||||
| Total Manufacturing cost: | 73080 | ||||
| Req 4. | |||||
| Total sales | 126000 | ||||
| Variable selling and admin expense as% of sales | 5% | ||||
| Total Variable Selling and admin expense | 6300 | ||||
| Req 5. | |||||
| Total variable cost: | |||||
| Material | 22680 | ||||
| Labor | 15120 | ||||
| Variable Selling and admin expense | 6300 | ||||
| Total Variable cost | 44100 | ||||
| Req 6. | |||||
| Total Fixed cost: | |||||
| Fixed Manufacturing Overheads | 35280 | ||||
| Fixed Selling and admin expense (18900-6300) | 12600 | ||||
| Total Fixed cost: | 47880 | ||||
| Req 7. | |||||
| Total sales | 126000 | ||||
| Less: variable cost | 44100 | ||||
| Contribution margin | 81900 | ||||
ekkarill92 answered 1 year agoRelated Solutions
Miller Company’s total sales are $120,000. The company’s direct labor cost is $15,000, which represents 30%...
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