Problem:
XYZ Corporation makes a single product. Below is the data concerning its operation for the month of July. Factorty overhead is applied on the 150% of direct labor cost. Two-third of the factory overhead is fixed. The total contribution margin is $1,320,000. The company has no beginning or ending inventory.
Required:
Question: What is the direct material cost Per Unit?
- Number of units sold 10,000
- Selling price per unit $300
- Manufacturing cost per unit $160
- Variable selling expenses per unit $18
- Total fixed selling expenses $54,700
- Variable admin. expenses per unit $32
- Total fixed admin. expenses $242,700
- $42
- $55
- $84
- $118
- None of the above
Note: Be sure to show how you arrived at your answer.