Hurlex Company produces a single product. last yar,Hurlex manufactured 15,000 un
ID: 2433715 • Letter: H
Question
Hurlex Company produces a single product. last yar,Hurlex manufactured 15,000 units and sold 12,000 units. Production costs for the yar were as follows: Directmaterials.....................................$150,000 Direct labor..........................................$180,000 Variable manufacturing overhead...........$135,000 Fixed manufacturing overhead................$210,000 Sales totaled $840,000 for the year, variable sellingexpenses totaled $60,000, and fixed selling andadministrative expenses totaled $180,000. There were no unitsin the beginning inventory. Assume that direct labor is avarialbe cost. The contribution margin pr unit would be: a) $25 b)$39 c)$34 d)$35 Hurlex Company produces a single product. last yar,Hurlex manufactured 15,000 units and sold 12,000 units. Production costs for the yar were as follows: Directmaterials.....................................$150,000 Direct labor..........................................$180,000 Variable manufacturing overhead...........$135,000 Fixed manufacturing overhead................$210,000 Sales totaled $840,000 for the year, variable sellingexpenses totaled $60,000, and fixed selling andadministrative expenses totaled $180,000. There were no unitsin the beginning inventory. Assume that direct labor is avarialbe cost. The contribution margin pr unit would be: a) $25 b)$39 c)$34 d)$35Explanation / Answer
Unit Price
Total
Unit Price
$70.00
$840,000
$10.00
$120,000
$12.00
$144,000
$ 9.00
$108,000
$4.00
$ 48,000
$35.00
$420,000
$35.00
$420,000
Unit Price
Total
Unit Price
Total Sales$70.00
$840,000
Variable Cost Direct Materials$10.00
$120,000
Direct Labor$12.00
$144,000
Variable Manufacturing Overhead$ 9.00
$108,000
Variable Selling Expense$4.00
$ 48,000
Total Variable Cost$35.00
$420,000
ContributionMargin$35.00
$420,000
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