Porter Company Has Provided the Following Data for the Second

question 26

Multiple Choice

Porter Company has provided the following data for the second quarter of the most recent year:
$\begin{array}{|l|r|}\hline \text { Sales } & \$ 300,000 \\\hline \text { Fixed Manufacturing Overhead } & 55,000 \\\hline \text { Direct Labour } & 72,500 \\\hline \text { Fixed Selling Expenses } & 46,250 \\\hline \text { Variable Manufacturing Overhead } & 41,000 \\\hline \text { Variable Administrative Expenses } & 48,000 \\\hline \text { Direct Materials } & 51,500 \\\hline \text { Fixed Administrative Expenses } & 44,500 \\\hline \text { Variable Selling Expenses } & 49,750 \\\hline\end{array}$ Assume that direct labour is a variable cost and that there was no beginning or ending inventories.



-What was the total contribution margin of Porter Company for the second quarter?

• A) $37,250.
• B) $87,000.
• C) $176,000.
• D) $211,000.

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Definitions:

Carrying Amount

Refers to the value of an asset or liability as reported on the balance sheet, considering factors like depreciation or amortization.

Depreciable Asset

A long-term asset subject to depreciation, reflecting the decrease in value over time due to wear and tear, age, or obsolescence.

Depreciation

The process of allocating the cost of a tangible asset over its useful life, representing how much of the asset's value has been used up.

Valuation Technique

Methods and procedures used to estimate the value of an asset, liability, or company, including discounting cash flow analysis and comparative market analysis.