Calculation of total gross margin under absorption costing

Reference no: EM13824216

Problem-

A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:

Selling price-

	$139

Units in beginning inventory	0
Units produced	2,990
Units sold	2,760
Units in ending inventory	230

Variable cost per unit:
Direct materials	$50
Direct labor	$15
Variable manufacturing overhead	$12
Variable selling and administrative	$9
Fixed costs:
Fixed manufacturing overhead	$107,640
Fixed selling and administrative expenses	$24,840

The total gross margin for the month under absorption costing is:

a. $71,760

b. $22,080

c. $135,480

d. $146,280

Additional Requirement-

The problem belongs to Accounting and it describes about calculation of total gross margin under absorption costing.

Reference no: EM13824216

Questions Cloud

Write a research paper about the given article : Write a research paper about the article "Why Are Athletes Earning More Money Than Academicians". he purpose of this final draft is to finish the paper you have been working on throughout the course by adding a conclusion.

What material is the wire made : A wire 1000ft long has a resistance of 0.5 kilo ohms and a area of 94 (CM). Of what material is the wire made?

Word paper that addresses the following questions : Select an issue, opportunity, or problem facing your organization. Write a 900- to 1,050-word paper that addresses the following questions:

Question regarding the binomial distribution : It is given that 60% of the employees at a large company are women. A simple random sample of 15 employees is selected from this company.

Calculation of total gross margin under absorption costing : The problem belongs to Accounting and it describes about calculation of total gross margin under absorption costing

Golf carts being assembled faster : A test run using the new method resulted in 27 golf carts being assembled in 1.56 hours with a standard deviation of .45. Did the new method result in the golf carts being assembled faster?

Describe a key conflict in the play tragedy : Describe a key conflict in the play "Tragedy" and how it corresponds to a character's development. Describe two key literary techniques and elements and techniques of drama that aid in developing the conflict.

Bayley psychomotor development index : Howell and Newcombe examined 6 month old infants who were low birth weight babies when they were born. Each child was rated on the Bayley Psychomotor Development Index.

What potential impact might the trends have on customers : What potential impact might the trends have on customers? How can a new venture capitalize on business and technological innovations?

User Account

All Pages