The Cost Accountant for the Corner Manufacturing Company Has Provided

question 51

Essay

The cost accountant for the Corner Manufacturing Company has provided you with the following information for the month of July:
$$\begin{array} { l c c } & \text { Variable costs Per unit } & \text { Total Fixed } \\\text { Direct labor } & \$ 27.50 & \\\text { Direct materials } & 84.75 & \\\text { Manfacturing overhead } & 14.25 & \$ 120,000 \\\text { Marketing costs } & 5.30 & 50,000 \\\text { Administrative costs } & 2.90 & 75,000\end{array}$$
Required:
Compute the following per unit items, assuming the company produced and sold 5,000 units at a price of $210.00 per unit.
(a) Total variable cost.
(b) Variable inventoriable cost.
(c) Full absorption cost.
(d) Full cost.
(e) Contribution margin.
(f) Gross margin.
(g) Profit margin.

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Definitions:

Taxpayers

Individuals or entities that are required to make payments to a governmental authority, often based on income or property ownership.

Parity Concept

The idea that year after year the sale of a specific output of a farm product should enable a farmer to purchase a constant amount of nonagricultural goods and services.

Agricultural Policy

A set of laws and regulations implemented by governments to regulate agricultural production, distribution, and pricing to achieve specific economic and social objectives.

Price support Program

Government initiatives aimed at maintaining the market price of a good or service at a certain level through subsidies or purchases.