Problem 2 56 Cost Concepts (LO 2-1, 6) Columbia Products produced and sold 1,200

Question

Problem 2 56 Cost Concepts (LO 2-1, 6) Columbia Products produced and sold 1,200 units of the company's only product in March. You have collected the following information from the accou Sales price (per unit) Manufacturing costs S 140 Fixed overhead (for the month) Direct labor (per unit) Direct materials (per unit) Variable overhead (per unit) 16,800 9 32 Marketing and administrative costs 16,800 Fixed costs (for the month) Variable costs (per unit) Required a. Compute the following 1. Variable manufacturing cost per unit 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 O Type here to search

Explanation / Answer

Variable manufacturing cost per unit= Total variable manufacturing costs/ Total no. of units produced

=22(already given directly in question)

2)full cost per unit=Total costs/ No. of units =(16800+16800)/1200 +9+32+22+5=96

3)variable cost per unit=22+5=27

4) full absorption cost per unit=16800/12 +9+32+22=77

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