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Question - Acme Inc. incurs the following costs during May:
Sales expense $13,400 Administrative expense $23,400
Direct labor 27,900 Plant depreciation 8,100
Factory supplies 4,400 Indirect labor 9,900
Advertising 4,700 Utilities 11,900*
Raw material used 19,900
*80% of this amount relates to the factory.
Required - Calculate the Acme's total manufacturing costs for May.
Compute the total contribution margin for 2011 and the comnbution margin percentage. Explain why the contribution margin differs from the gross margin.
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