the following data for questions 11.4-124 Donovan Company incurred the following

Question

the following data for questions 11.4-124 Donovan Company incurred the following costs while producing 500 units: direct materials, $10 per unit; direct labor, $25 per unit; variable manufacturing overhead $15 per unit: total fixed manufacturing overhed costs, $10,000; varaiable selling and administrative costs, $5 per unit, total fixed selling and administrative costs, $7,500. There are no beginning inventories. IA. What is the unit product cost using variable costing? S70 per unit d. $90 per unit c. a. $50 per unit b. $55 per unit What is the operating income using variable costing if 450 units are sold for $100 each? a. $2,750 d. $2,500 c. $500 b. $5,000

Explanation / Answer

11A) d. $90 per unit Unit product cost: $ Direct material 10 Direct labor 25 Variable manufacturing overhead 15 Fixed manufacturing overhead (10000/500) 20 Variable selling and administrative costs 5 Fixed selling and administrative costs (7500/500) 15 Unit product cost 90 12A) a. $2750 $ Sales revenue (450*100) 45000 (-) Variable costs: Direct material (450*10) 4500 Direct labor (450*25) 11250 Variable manufacturing overhead (450*15) 6750 Variable selling and administrative costs (5*450) 2250 Total variable costs 24750 Contribution margin 20250 Fixed costs: Fixed manufacturing overhead 10000 Fixed selling and administrative costs 7500 Total fixed costs 17500 Net income 2750

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.