Zeman Company Has No Beginning and Ending Inventories,and Reports the Following

question 69

Multiple Choice

Zeman Company has no beginning and ending inventories,and reports the following data about its only product:
$\begin{array}{ll}\text { Direct materials used } & \$ 200,000 \\\text { Direct labor } & \$ 180,000 \\\text { Fixed indirect manufacturing } & \$ 100,000 \\\text { Fixed selling and administrative } & \$ 150,000 \\\text { Variable indirect manufacturing } & \$ 120,000 \\\text { Variable selling and administrative } & \$ 60,000 \\\text { Selling price(per unit) } & \$ 75\end{array}$
$\begin{array} { l } \text {Units produced and sold }&10,000 \\\end{array}$

Zeman Company uses the contribution approach to prepare the income statement.What is the contribution margin?

• A) $150,000
• B) $190,000
• C) $250,000
• D) $370,000

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Definitions:

Gantt Chart

A visual tool used in project management to depict project tasks against time, showing start and end dates, as well as task duration.

Scheduling Device

A tool or software used to organize, allocate, and manage tasks and events over time efficiently.

Production Process

A series of steps that includes the acquisition of raw materials, their conversion into finished goods, and the final delivery of the product.

Backward Scheduling

A planning method that starts with the end goal or deadline and works backwards to determine the timing of preceding activities.