Mario Co Produces Three Products: LMC, DMC, KPC

question 78

Essay

Mario Co. produces three products: LMC, DMC, KPC. For the coming year they expect to produce 160,000 units. Of these, 65,000 will be LMC, 40,000 will be DMC and 55,000 will be KPC. The following information was provided for the coming year:
Common fixed overhead is $984,000 and fixed selling and administrative expenses for Mario Co. is $881,000 per year.
Required:
A. Calculate the unit variable cost under variable costing.
B. Calculate the unit variable product cost.
C. Prepare a segmented variable-costing income statement for next year.
D. Should Mario Co. keep all product lines?

Understand the significance of positive language in business communication.

Comprehend the importance and application of you-viewpoint in enhancing clarity and empathy in business messages.

Identify strategies for avoiding blame in business communication to maintain goodwill.

Demonstrate the ability to compose business messages that both address concerns and maintain or build goodwill.

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Definitions:

Direct Materials Quantity Variance

The difference between the actual quantity of direct materials used in production and the standard quantity expected, valued at the standard cost.