144. A company reports the following information regarding its production cost:
Units produced
|
14,000 units
|
Direct labor
|
$13 per unit
|
Direct materials
|
$3 per unit
|
Variable overhead
|
? in total
|
Fixed overhead
|
$56,000 in total
|
Required: Perform the following independent calculations.
a. Compute total variable overhead cost if the production cost per unit under variable costing is $73.
b. Compute total variable overhead cost if the production cost per unit under absorption costing is $73.
145. A company reports the following information regarding its production cost:
Units produced
|
22,000 units
|
Direct labor
|
$31 per unit
|
Direct materials
|
$27 per unit
|
Variable overhead
|
? in total
|
Fixed overhead
|
$2,750,000 in total
|
Required: Perform the following independent calculations.
a. Compute total variable overhead cost if the production cost per unit under variable costing is $240.
b. Compute total variable overhead cost if the production cost per unit under absorption costing is $240.
146. Digby Company manufactured and sold 37,000 units of its product at a price of $93 per unit. Total variable cost per unit is $60, consisting of $58 in variable production cost and $2 in variable selling and administrative cost. Fixed costs of manufacturing are $350,000.
a. Compute the manufacturing margin for the company under variable costing.
b. Compute the contribution margin based on this data.
c. Compute the gross margin under absorption costing.
147. Planet Corporation sold 21,000 units of its product at a price of $250 per unit. Total variable cost per unit is $187, consisting of $104 in variable production cost and $83 in variable selling and administrative cost. Compute the manufacturing margin for the company under variable costing.