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wariber [46]
3 years ago
5

Columbia Products produced and sold 900 units of the company's only product in March. You have collected the following informati

on from the accounting records
Sales price (per unit)
Manufacturing costs $ 448
Fixed overhead 50,400
Direct labor (per unit) 35
Direct materials (per unit) 112
Variable overhead (per unit) 70 (for the month)
Marketing and administrative costs
Fixed costs (for the month) 67,500
Variable costs (per unit) 14
Required:
Compute the following:____
1. Variable manufacturing cost per unit $217
2. Full cost per unit
3. Variable cost per unit
4. Full absorption cost per unit.
5. Prime cost per unit.
6, Conversion cost per unit.
7. Profit margin per unit
8. Contribution margin per unit
9. Gross margin per unit
Business
1 answer:
blsea [12.9K]3 years ago
4 0

Answer:

Results are below.

Explanation:

Giving the following information:

Units produced and sold= 900

Sales price (per unit) $448

Manufacturing costs:

Fixed overhead 50,400

Direct labor (per unit) 35

Direct materials (per unit) 112

Variable overhead (per unit) 70 (for the month)

Marketing and administrative costs:

Fixed costs (for the month) 67,500

Variable costs (per unit) 14

a. Variable manufacturing cost= 35 + 112 + 70= $217

b. Total cost:

Total variable cost= (217 + 14)*900= 207,900

Total fixed cost= 50,400 + 67,500= 117,900

Total cost= $325,800

Total cost per unit= 325,800/900= $362

c. Total variable cost= 217 + 14= $231

<u>d. The absorption costing method includes all costs related to production, both fixed and variable</u>.

Absorption cost= 217 + (50,400/900)= $273

<u>e. Prime cost= direct material + direct labor</u>

Prime cost= 112 + 35= $147

<u>f. Conversion cost= direct labor + unitary variable overhead</u>

Conversion cost= 35 + 70= $105

<u>g. Profit margin= selling price - total unitary cost</u>

Profit margin= 448 - 362= $86

<u>h. Contribution margin per unit= selling price - total unitary variable cost</u>

Contribution margin per unit= 448 - 231= $217

<u>j. Gross margin per unit= Selling price - absorption cost per unit</u>

Gross margin per unit= 448 - 273= $175

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Answer:

A) The marketing research process

Explanation:

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Defining the problem, developing the research plan, collecting information, analyzing information, presenting the findings and lastly making decision.

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3 years ago
Whenever marginal cost is greater than average total cost, A. average total cost is rising. B. marginal cost is falling. C. aver
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Answer:

A. average total cost is rising.

Explanation:

Whenever marginal cost is more than average cost it means it costs more to produce a unit now compared to the average cost of the previous units. Lets assume that a company produces 3 units  of a good.

The first unit costs $1

The second unit costs $2

The third unit costs $3.

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Now if the marginal cost for producing a unit is more than the average cost for example if the marginal cost is 4, then this will mean that average total cost is rising. we can mathematically check this.

The first unit costs $1

The second unit costs $2

The third unit costs $3.

The fourth unit costs $4

Average cost= (1+2+3+4)/4=10/4=2.5

Here we see that the average cost increased from 2 to 2.5 because marginal cost was greater than average cost.

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3 years ago
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Answer:

Product line Pricing  

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Answer:

The overhead for the year was $130,075

Explanation:

GIVEN INFORMATION -

                                                    ESTIMATED                              ACTUAL

Manufacturing overhead            $132,440                                   $128,600

Machine hours                             2800                                           2750

Here for calculating the overhead for the year we will use the following formula =      

\frac{Estimated Manufacturing Overhead}{Estiamted Machine Hours}\times Actual Machine Hours

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Therefore the overhead for the year was $130,075

                                   

5 0
3 years ago
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Answer:

Journal Entry

Explanation:

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Therefore for recording the issuance of common stock we debited cash and credited common stock and additional Paid in Capital in excess of par common stock

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