What is the company’s total contribution margin under variable costing? 3. What is the company’s net operating income under variable costing 4. What is the company’s total gross margin under absorption costing?
What is the company’s total contribution margin under variable costing? 3. What is the company’s net operating income under variable costing 4. What is the company’s total gross margin under absorption costing?
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 14EA: Cool Pool has these costs associated with production of 20,000 units of accessory products: direct...
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Question
2. What is the company’s total contribution margin under variable costing?
3. What is the company’s net operating income under variable costing
4. What is the company’s total gross margin under absorption costing?
![Required information
[The following information applies to the questions displayed below.]
Diego Company manufactures one product that is sold for $78 per unit. The following information pertains to the
company's first year of operations in which it produced 60,000 units and sold 55,000 units.
Variable costs per unit:
Manufacturing:
Direct materials
Direct labour
Variable manufacturing overhead
Variable selling and administrative
Fixed costs per year:
Fixed manufacturing overhead
Fixed selling and administrative expenses
2. What is the unit product cost under absorption costing?
Unit product cost
$
$
8223
12
$1,260,000
$ 654,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F15c83c94-5314-4a21-9e70-4aa8e53c29f2%2F4b9bd1c2-6ca1-4536-8285-e47ca95a55bb%2Fnlxe3tm_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
Diego Company manufactures one product that is sold for $78 per unit. The following information pertains to the
company's first year of operations in which it produced 60,000 units and sold 55,000 units.
Variable costs per unit:
Manufacturing:
Direct materials
Direct labour
Variable manufacturing overhead
Variable selling and administrative
Fixed costs per year:
Fixed manufacturing overhead
Fixed selling and administrative expenses
2. What is the unit product cost under absorption costing?
Unit product cost
$
$
8223
12
$1,260,000
$ 654,000
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