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    Keller Best Manufacturing: Total Contribution Margin

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    Keller Best Manufacturing produces a single product. The following data pertain to the company's last operating month:

    **TABLE INCLUDED IN ATTACHMENT**

    Questions:
    1. What was the total Contribution Margin for the month using the variable costing approach?
    2. What was the Gross Margin for the month under the absorption costing approach?
    3. What were the total Period Costs for the month under the variable costing approach?
    4. What were the total Period Costs for the month under the absorption costing approach?
    5. Explain the differences between the traditional and the contribution margin income statements.

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    HOMEWORK PRACTICE PROBLEM

    Keller Best Manufacturing produces a single product. The following data pertain to the company's last operating month:
    Selling price

    Units in beginning inventory
    Units produced
    Units sold
    Units in ending inventory

    Variable costs per unit:
    Direct materials
    Direct labor
    Variable manufacturing overhead
    Variable selling and administrative

    Fixed costs:
    Fixed manufacturing overhead
    Fixed selling and administrative $130

    0
    3,000
    2,500
    500

    $50
    30
    5
    10

    $ ...

    Solution Summary

    The total contribution margin for the month using the variable costing approach is determined.

    $2.19

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