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Practice exam questions, managerial accounting

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

Solution Summary

Your tutorial is in Excel. Click in cells to see computations.

$2.19