VII. Polytech Inc. produces a laptop. The selling_price_per unit of the laptop is $500. Data for last year's operations follow: Sales (1,000 units) Variable manufacturing overhead Fixed selling and administrative costs 50,000 Direct materials used Direct labor Fixed manufacturing overhead 90,000 Variable selling and administrative 30,000 $500,000 120,000 100,000 60,000 Required: (1) Compute the total manufacturing cost of goods sold (2) Compute the contribution margin (3) Compute the gross margin or gross profit
VII. Polytech Inc. produces a laptop. The selling_price_per unit of the laptop is $500. Data for last year's operations follow: Sales (1,000 units) Variable manufacturing overhead Fixed selling and administrative costs 50,000 Direct materials used Direct labor Fixed manufacturing overhead 90,000 Variable selling and administrative 30,000 $500,000 120,000 100,000 60,000 Required: (1) Compute the total manufacturing cost of goods sold (2) Compute the contribution margin (3) Compute the gross margin or gross profit
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter18: Pricing And Profitability Analysis
Section: Chapter Questions
Problem 3CE: Pattison Products, Inc., began operations in October and manufactured 40,000 units during the month...
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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