Reference no: EM132202933

Questions -

Q1. Murphy Inc., which produces a single product, has provided the following data for its most recent month of operation:

Number of units produced 16,900

Variable costs per unit: 

Direct materials $157

Direct labor $79

Variable manufacturing overhead $12

Variable selling and administrative expenses $12

Fixed costs: 

Fixed manufacturing overhead $929,500

Fixed selling and administrative expenses $371,800

The company had no beginning or ending inventories.

Required:

a. Compute the unit product cost under absorption costing?

b. Compute the unit product cost under variable costing?

Q2. Aaron Corporation, which has only one product, has provided the following data concerning its most recent month of operations:

Selling price $102  

Units in beginning inventory 0

Units produced 4,200

Units sold 3,570

Units in ending inventory 630

Variable costs per unit: 

Direct materials $19

Direct labor $41

Variable manufacturing overhead $7

Variable selling and administrative expense $4

Fixed costs: Fixed manufacturing overhead $51,100

Fixed selling and administrative expense $3,100

The total contribution margin for the month under variable costing is:

A. 110670

B. 56470

C. 59570

D. 124950

Q3. A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:

Selling price $176

Units in beginning inventory 0

Units produced 12,900

Units sold 12,500

Units in ending inventory 400

Variable costs per unit: 

Direct materials $54

Direct labor $48

Variable manufacturing overhead $12

Variable selling and administrative expense $8

Fixed costs: 

Fixed manufacturing overhead $412,800

Fixed selling and administrative expense $225,000

1. What is the total period cost for the month under variable costing?

A. 737800

B. 325000

C. 412800

D. 637800

Q4. A company produces a single product. Variable production costs are $13.10 per unit and variable selling and administrative expenses are $4.10 per unit. Fixed manufacturing overhead totals $47,000 and fixed selling and administration expenses total $51,000. Assuming a beginning inventory of zero, production of 5,100 units and sales of 4,150 units, the dollar value of the ending inventory under variable costing would be:

A. $8,550

B. $16,340

C. $12,445

D. $20,995