QUESTION 1 Duy Company has provided the following data for the second quarter of

ID: 2429507 • Letter: Q

Question

QUESTION 1 Duy Company has provided the following data for the second quarter of the most recent year 3600 103 145 110 ect materials Direct labor Fixed manufacturing overhead Variable manufacturing overhead Fixed administrative expense Variable administrative expense Fixed selling expense 89.000 96 ariable selling expense Assume hat direct labor is a variable cost and that there were no begineing or ending inventories. The company's total contribution margin for the quarter was O $74,500 ?$174.000. $352.000 O $422.000

Explanation / Answer

Answer:

Company's Total Contribution margin for the quarter=$74,500

Working notes for the above answer is as under

Sales

600,000

Less: Variable cost

Direct material

103000

Direct Labor

145000

Variable manufacturing overhead

82000

Variable Admin Exp

96000

Variable Selling Expanses

99500

Total variable cost

525500

Total Contribution margin

74,500