Krepps Corporation produces a single product. Last year, Krepps manufactured 33,

Question

Krepps Corporation produces a single product. Last year, Krepps manufactured 33,110 units and sold 27,600 units. Production costs for the year were as follows: Direct materials $ 248,325 Direct labor $ 175,483 Variable manufacturing overhead $ 294,679 Fixed manufacturing overhead $ 463,540 Sales totaled $1,242,000 for the year, variable selling and administrative expenses totaled $140,760, and fixed selling and administrative expenses totaled $221,837. There was no beginning inventory. Assume that direct labor is a variable cost. The contribution margin per unit was:

Explanation / Answer

Calculate contribution margin per unit :

Selling price per unit (1242000/27600) 45 Variable cost per unit Direct material per unit (248325/33110) 7.50 Direct labour per unit (175483/33110) 5.30 Variable manufacturing overhead (294679/33110) 8.90 variable selling and administrative expenses (140760/27600) 5.20 Total variable cost per unit 26.80 Contribution margin per unit 18.20

Related Questions

Navigate

• Browse (All)
• Browse K
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.