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?

Question
Asked Feb 7, 2019

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?

check_circleExpert Solution
Step 1

Req 1.

Total conversion cost is sum of Direct labouor and manufacturing overheads.

The computation is as above.

fullscreen
Step 2

Req 2.

Prime cost is sum total of direct material cost and direct labour cost.

The computation is as above.

fullscreen
Step 3

Req 3.

Total manufacturing cost includes direct material cost...

fullscreen

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour*

See Solution
*Response times may vary by subject and question
Tagged in

Business

Accounting

Related Accounting Q&A

Find answers to questions asked by student like you

Show more Q&A add
question_answer

Q: Calculate earned revenues Kirkland Theater sells season tickets for six events at a price of $180. I...

A: Revenue is the amount that a company earns from normal activities conducted by the business for exam...

question_answer

Q: Flexible Budgets; Total Operating Income Variance; Breakdown of the Total Operating Income Variance;...

A: 1. Total operating income variance for July.

question_answer

Q: Zenon Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day...

A: Flexible Budget: The flexible budget is a budget which modifies itself as per the variations in the ...

question_answer

Q: Hello, I attempted this problem but my values are not correct. Can you help me solve this? Thanks!

A: Break-even analysis is the easiest form of cost-volume-profit analysis. Break-even analysis is used ...

question_answer

Q: There can be three subgroups within the long-term capital gain or loss group – 0%/15%/20%, 25%, and ...

A: Generally,  capital gains are taxed at a rate of 15%. However a 0 % rate can also be applied when th...

question_answer

Q: AT SUGEY CIRCUS at jUNE 30 curren year has account payable....$31,320 accounts receivble 8,940 anima...

A: Balance Sheet The balance sheet is one of the financial statements prepared at the end of the financ...

question_answer

Q: HH purchased new shelving for its store on April 1, 2018. The shelving is expected to have a 20-year...

A: Since, we only answer upto 3 sub-parts, we'll answer the first 3.Please resubmit the question and sp...

question_answer

Q: I'm in the annuity section of accounting.  With the 6 tables the Spiceland book provides (listed bel...

A: FV of $1: This table is used to calculate the future value of a current investment that will grow ov...

question_answer

Q: Tim used his 2015 F-150 pickup truck to meet with clients and for other business needs.  The truck w...

A: Assuming, the trucks driven 15,473 miles during the year 2018 instead of year 2016, and 3,541 miles ...