Columbia Products produced and sold 1,400 units of the companyâs only product in March. You have collected the following information from the accounting records:
Sales price (per unit) $ 129 Manufacturing costs: Fixed overhead (for the month) 16,800 Direct labor (per unit) 7 Direct materials (per unit) 31 Variable overhead (per unit) 26 Marketing and administrative costs: Fixed costs (for the month) 22,400 Variable costs (per unit) 4
Required:
a. Compute the following:
1. Variable manufacturing cost per unit. $64 2. Full cost per unit. $96 3. Variable cost per unit. $68 4. Full absorption cost per unit. $ 5. Prime cost per unit. 6. Conversion cost per unit. 7. Profit margin per unit. 8. Contribution margin per unit. 9. Gross margin per unit.
| Columbia Products produced and sold 1,400 units of the companyâs only product in March. You have collected the following information from the accounting records:
Required: a. Compute the following: | |||||||||||||||||||||||||||||||||
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Related questions
Exercise 2-27 Basic Concepts (LO 2-1, 2, 6)
| The followingdata apply to the provision of psychological testing services. |
| Sales price per unit (1 unit = 1 test plus feedback toclient) | $ | 320 | |
| Fixed costs (per month): | |||
| Selling andadministration | 16,000 | ||
| Production overhead(e.g., rent of testing facilities) | 16,000 | ||
| Variable costs (per test): | |||
| Labor for oversight andfeedback | 140 | ||
| Outsourced testanalysis | 22 | ||
| Materials used intesting | 7 | ||
| Production overhead | 15 | ||
| Selling andadministration (e.g., scheduling and billing) | 12 | ||
| Number of tests per month | 500 | tests | |
| Required: |
| Calculate the amount for each of the following (one unit = onetest) if the number of tests is 500 per month. Also calculate ifthe number of tests decreases to 400 per month. A. VARIABLE PRODUCTION COST PER UNIT B. VARIABLE COST PER UNIT C. FULL COST PER UNIT D. FULL ABSORPTION COST PER UNIT E. PRME COST PER UNIT F. CONVERSION MARGIN PER UNIT G. CONTRIBUTION MARGIN PER UNIT H. GROSS MARGIN PER UNIT |
| #14 | Randolph Corporation sells a single product at a price of $275 per unit. Variable cost per unit is $135 and fixed costs total $356,860. If sales are expected to be $825,000, what is the companyâs margin of safety? | ||||
| #15 | Roger Excavating Company experienced the following costs in 2016: | ||||
| Direct materials | $1.75 per unit | ||||
| Direct labor | $2.00 per unit | ||||
| Variable manufacturing overhead | $2.50 per unit | ||||
| Variable selling | $0.75 per unit | ||||
| Fixed manufacturing overhead | $50,000 | ||||
| Fixed selling | $15,000 | ||||
| Fixed administrative | $5,000 | ||||
| During 2016, the company manufactured 100,000 units and sold 80,000 units. If the average selling price per unit was $22.65, what is the amount of the companyâs contribution margin per unit? | |||||
13 A manufacturing company that produces a single product hasprovided the following data concerning its most recent month ofoperations: |
Selling price | $149 |
Units in beginning inventory | 0 |
Units produced | 2,770 |
Units sold | 2,520 |
Units in ending inventory | 250 |
Variable costs per unit: | |
Direct materials | $51 |
Direct labor | $20 |
Variable manufacturing overhead | $10 |
Variable selling and administrative | $12 |
Fixed costs: | |
Fixed manufacturing overhead | $96,950 |
Fixed selling and administrative expenses | $35,280 |
The total gross margin for the month under absorption costingis: |
$83,160
$17,640
$130,320
$141,120
14 A manufacturing company that produces a single product hasprovided the following data concerning its most recent month ofoperations: |
Units in beginning inventory | 0 |
Units produced | 4,750 |
Units sold | 4,650 |
Units in ending inventory | 100 |
Variable costs per unit:
Direct materials | $ | 56 |
Direct labor | $ | 58 |
Variable manufacturing overhead | $ | 21 |
Variable selling and administrative | $ | 19 |
Fixed costs:
Fixed manufacturing overhead | $ | 99,750 |
Fixed selling and administrative | $ | 46,500 |
What is the variable costing unit product cost for the month?
$154 per unit
$175 per unit
$135 per unit
$141 per unit
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15 Bartelt Inc., which produces a single product, has providedthe following data for its most recent month of operations: |
Number of units produced | 4,600 |
Variable costs per unit: | |
Direct materials | $108 |
Direct labor | $105 |
Variable manufacturing overhead | $5 |
Variable selling and administrative expense | $12 |
Fixed costs: | |
Fixed manufacturing overhead | $184,000 |
Fixed selling and administrative expense | $322,000 |
There were no beginning or ending inventories. The absorptioncosting unit product cost was: |
$213 per unit
$258 per unit
$218 per unit
$340 per unit
16 Rehmer Corporation is working on its direct labor budget forthe next two months. Each unit of output requires 0.09 directlabor-hours. The direct labor rate is $8.50 per direct labor-hour.The production budget calls for producing 5,600 units in June and6,100 units in July. |
Required: | ||||||||||||||||||
| Construct the direct labor budget for the next two months,assuming that the direct labor work force is fully adjusted to thetotal direct labor-hours needed each month. (Round youranswers to 2 decimal places.)
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