Problem
Larcker Manufacturing's cost accountant has provided you with the following information for January operations:
|
Direct materials
|
$
|
30
|
per unit
|
|
Fixed manufacturing overhead costs
|
$
|
210,000
|
|
|
Sales price
|
$
|
195
|
per unit
|
|
Variable manufacturing overhead
|
$
|
18
|
per unit
|
|
Direct labor
|
$
|
27
|
per unit
|
|
Fixed marketing and administrative costs
|
$
|
200,000
|
|
|
Units produced and sold
|
$
|
5,500
|
|
|
Variable marketing and administrative costs
|
$
|
8
|
per unit
|
Required:
a. Determine the variable cost per unit.
b. Determine the variable manufacturing cost per unit.
c. Determine the full absorption cost per unit.
d. Determine the full cost per unit.
e. Determine the profit margin per unit.
f. Determine the gross margin per unit.
g. Determine the contribution margin per unit.