  # 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

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.

Step 2

Req 2.

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

The computation is as above.

Step 3

Req 3.

Total manufacturing cost includes direct material cost...

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