If the Contribution Margin Is $24 for Product T and $8

question 64

Multiple Choice

If the contribution margin is $24 for product T and $8 for product Z,fixed costs are $30 000 and the sales mix is 25% product T and 75% product Z,the weighted average contribution margin is:

• A)$32
• B)$16
• C)$20
• D)$12

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Definitions:

Direct Labor-Hours

The total number of hours worked by employees directly involved in manufacturing goods or providing services.

Direct Materials Purchases Variance

A measure used in managerial accounting to compare the actual cost of direct materials to the expected cost.

Direct Labor-Hours

The cumulative hours put in by workers directly engaged in manufacturing products or delivering services.

Labor Rate Variance

The variance between the real labor costs and the projected or normative labor costs.