The controller at Wesson Company's manufacturing plant has provided you with the following information for the first quarter's operations: Direct materials Fixed manufacturing overhead costs Sales price Variable manufacturing overhead Direct labor Fixed marketing and administrative costs Units produced and sold during the quarter Variable marketing and administrative costs. Required: a. Determine the variable cost per unit. b. Determine the variable manufacturing cost per unit. c. Determine the full absorption cost per unit. d. Determine the full cost per unit. e. Determine the profit margin per unit. f. Determine the gross margin per unit. g. Determine the contribution margin per unit. Note: Round your answer to 2 decimal places. a. Variable cost per unit b. Variable manufacturing cost per unit c. Full absorption cost per unit d. Full cost per unit e. Profit margin per unit f. Gross margin per unit g. Contribution margin per unit $ 116 per unit $ 2,540,000 $ 525 per unit $57 per unit $74 per unit $ 290,000 45,000 $4 per unit
The controller at Wesson Company's manufacturing plant has provided you with the following information for the first quarter's operations: Direct materials Fixed manufacturing overhead costs Sales price Variable manufacturing overhead Direct labor Fixed marketing and administrative costs Units produced and sold during the quarter Variable marketing and administrative costs. Required: a. Determine the variable cost per unit. b. Determine the variable manufacturing cost per unit. c. Determine the full absorption cost per unit. d. Determine the full cost per unit. e. Determine the profit margin per unit. f. Determine the gross margin per unit. g. Determine the contribution margin per unit. Note: Round your answer to 2 decimal places. a. Variable cost per unit b. Variable manufacturing cost per unit c. Full absorption cost per unit d. Full cost per unit e. Profit margin per unit f. Gross margin per unit g. Contribution margin per unit $ 116 per unit $ 2,540,000 $ 525 per unit $57 per unit $74 per unit $ 290,000 45,000 $4 per unit
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 12E: Activity cost pools, activity rates, and product costs using activity-based costing Caldwell Home...
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Transcribed Image Text:The controller at Wesson Company's manufacturing plant has provided you with the following information for the first quarter's
operations:
Direct materials
Fixed manufacturing overhead costs
Sales price
Variable manufacturing overhead
Direct labor
Fixed marketing and administrative costs
Units produced and sold during the quarter
Variable marketing and administrative costs
Required:
a. Determine the variable cost per unit.
b. Determine the variable manufacturing cost per unit.
c. Determine the full absorption cost per unit.
d. Determine the full cost per unit.
e. Determine the profit margin per unit.
f. Determine the gross margin per unit.
g. Determine the contribution margin per unit.
Note: Round your answer to 2 decimal places.
a. Variable cost per unit
b. Variable manufacturing cost per unit
c. Full absorption cost per unit
d. Full cost per unit
e. Profit margin per unit
f. Gross margin per unit
g. Contribution margin per unit
$ 116 per unit
$ 2,540,000
$ 525 per unit
$57 per unit
$74 per unit
$ 290,000
45,000
$4 per unit
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VIEWStep 5: d) Calculation of full cost per unit:
VIEWStep 6: e) Calculation of profit margin:
VIEWStep 7: f) Calculation of gross margin:
VIEWStep 8: g) Calculation of contribution margin per unit:
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