Cullumber Industries carries no inventories. Its product is manufactured only when a customer’s order is received. It is then shipped immediately after it is made. For its fiscal year ended October 31, 2020, Cullumber’s break-even point was $1.35 million. On sales of $1.20 million, its income statement showed a gross profit of $192,000, direct materials cost of $408,000, and direct labor costs of $508,000. The contribution margin was $156,000, and variable manufacturing overhead was $50,000. Calculate the following: 1. Variable selling and administrative expenses. $ 2. Fixed manufacturing overhead. $ 3. Fixed selling and administrative expenses. $
Cullumber Industries carries no inventories. Its product is manufactured only when a customer’s order is received. It is then shipped immediately after it is made. For its fiscal year ended October 31, 2020, Cullumber’s break-even point was $1.35 million. On sales of $1.20 million, its income statement showed a gross profit of $192,000, direct materials cost of $408,000, and direct labor costs of $508,000. The contribution margin was $156,000, and variable manufacturing overhead was $50,000. Calculate the following: 1. Variable selling and administrative expenses. $ 2. Fixed manufacturing overhead. $ 3. Fixed selling and administrative expenses. $
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 14E: For each of the following independent situations, calculate the missing values: 1. The Belen plant...
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Cullumber Industries carries no inventories. Its product is manufactured only when a customer’s order is received. It is then shipped immediately after it is made. For its fiscal year ended October 31, 2020, Cullumber’s break-even point was $1.35 million. On sales of $1.20 million, its income statement showed a gross profit of $192,000, direct materials cost of $408,000, and direct labor costs of $508,000. The contribution margin was $156,000, and variable manufacturing
Calculate the following:
| 1. | Variable selling and administrative expenses. |
$
|
||
| 2. | Fixed manufacturing overhead. |
$
|
||
| 3. | Fixed selling and administrative expenses. |
$
|
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