Arche Produces a Product with the Following Per Unit Costs $\begin{array}{lr}\text { Direct materials } & \$ 17 \\\text { Direct labour } & 11 \\\text { Overhead } & 12\end{array}$

question 80

Essay

Arche produces a product with the following per unit costs. $\begin{array}{lr}\text { Direct materials } & \$ 17 \\\text { Direct labour } & 11 \\\text { Overhead } & 12\end{array}$ Last year,Arche produced and sold 3,000 units at a sales price of $80 each.Total selling and administrative expenses were $25,000.
Required: Solve for the following: A. $\quad$ total cost of goods sold for last year
B. $\quad$ operating income for last year
C. $\quad$ total gross margin for last year
D. $\quad$ prime cost per unit

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Definitions:

Federal Insurance Contributions Act

A U.S. law that mandates a payroll tax on the paychecks of employees, as well as contributions from employers, to fund the Social Security and Medicare programs.

Cumulative Gross Earnings

The total gross income earned by an individual or entity before any deductions over a given period.

State Tax Rate

The percentage at which individuals or businesses within a state are taxed by the state government.

FICA

The Federal Insurance Contributions Act; a U.S. law that requires a deduction from paychecks to fund Social Security and Medicare benefits.