Harris Company produces a single product. Last year, Harris manufactured 17,000 units and sold 13,000 units. Production
Posted: Sat Feb 19, 2022 2:31 pm
Harris Company produces a single product. Last year, Harris manufactured 17,000 units and sold 13,000 units. Production costs for the year were as follows:
Direct materials $ 153.000
Direct labor $ 110.500
Variable manufacturing overhead $204.00
Fixed manufacturing overhead $ 255.000
Sales were $780,000 for the year, variable selling and administrative expenses were $88,400, and fixed selling and administrative expenses were $170,000. There was no beginning inventory. Assume that direct labor is a variable cost.
The contribution margin per unit was:
Direct materials $ 153.000
Direct labor $ 110.500
Variable manufacturing overhead $204.00
Fixed manufacturing overhead $ 255.000
Sales were $780,000 for the year, variable selling and administrative expenses were $88,400, and fixed selling and administrative expenses were $170,000. There was no beginning inventory. Assume that direct labor is a variable cost.
The contribution margin per unit was: