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:

Outsourcing Clause

A provision in a collective bargaining agreement that limits or regulates the extent to which an employer can contract out work to third parties.

Successorship Clause

A provision within a collective bargaining agreement that maintains the union's rights and preserves the workers' terms of employment when the business changes ownership.

Grievance Procedures

Refers to the formal steps taken by an organization to address complaints or disputes from employees.

Workplace Disputes

Conflicts or disagreements that arise in the course of employment, often involving issues such as wages, conditions, or treatment of workers.