Miller Company’s total sales are $120,000. The company’s direct labor cost is $15,000, which represents 30% of its total conversion cost and 40% of its total prime cost. Its total selling and...

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Miller Company’s total sales are $120,000. The company’s direct labor cost is $15,000, which represents 30% of its total conversion cost and 40% of its total prime cost. Its total selling and administrative expense is $18,000 and its only variable selling and administrative expense is a sales commission of 5% of sales. The company maintains no beginning or ending inventories and its manufacturing overhead costs are entirely fixed costs.


Required:


1. What is the total manufacturing overhead cost?


2. What is the total direct materials cost?


3. What is the total manufacturing cost?


4. What is the total variable selling and administrative cost?


5. What is the total variable cost?


6. What is the total fixed cost?


7. What is the total contribution margin?



Answered 39 days AfterNov 26, 2021

Answer To: Miller Company’s total sales are $120,000. The company’s direct labor cost is $15,000, which...

Sumit answered on Jan 05 2022
126 Votes
Sheet2
    Particulars    Amount
    Sales    120000
    Diect labour cost     15000
    Direct Material cost    22500
    Prime cost    37500
    Factory Overheads (Fixed)    12500
    Total Conversion Cost    50000
    Variable Selling Expense    12000
    Fixed Selling Expense    6000
    Totol Cost of Production    68000
    1. Total...
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