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    Practice exam questions, managerial accounting

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    Yoshihara Corporation produces a single product and has the following cost structure:

    Number of units produced each year 5,700
    Variable costs per unit:
    Direct materials $70
    Direct labor $63
    Variable manufacturing overhead $8
    Variable selling and administrative expense $8

    Fixed costs per year:
    Fixed manufacturing overhead $273,600
    Fixed selling and administrative expense $119,700

    The absorption costing unit product cost is:

    a.$197
    b.$141
    c.$189
    d.$157

    2. Harris Company produces a single product. Last year, Harris manufactured 17,700 units and sold 13,700 units. Production costs for the year were as follows:

    Direct materials $159,300
    Direct labor $100,890
    Variable manufacturing overhead $221,250
    Fixed manufacturing overhead $277,890

    Sales were $813,780 for the year, variable selling and administrative expenses were $98,640, and fixed selling and administrative expenses were $178,770. There was no beginning inventory. Assume that direct labor is a variable cost.

    The contribution margin per unit was:

    a.$23.37
    b.$14.9
    c.$25
    d.$32.2

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