Question

Columbia Products produced and sold 1,300 units of the company's only product in March. You have collected the following information from the accounting records: $ 131 14,300 32 Sales price (per unit) Manufacturing costs: Fixed overhead (for the month) Direct labor (per unit) Direct materials (per unit) Variable overhead (per unit) 25 Marketing and administrative costs 22,100 Fixed costs (for the month) Variable costs (per unit) Required: a. Compute the following 1. Variable manufacturing cost per unit 2. Full cost per unit. 3. Variable cost per unit. 4 Full absorption cost per unit 5. Prime cost per unit 6. Conversion cost per unit 7. Profit margin per unit 8. Contribution margin per unit 9. Gross margin per unit

Answer 1

Answer
Answer 1.
Direct Labor	7
Direct Material	32
Variable Overhead	25
Total Variable Manufacturing Cost per Unit	64
Answer 2.
Variable Manufacturing Cost
Direct Labor	7
Direct Material	32
Variable Overhead	25
Fixed Manufacturing Costs
Fixed Overhead - $14300 / 1,300 Units	11
Marketing and administrative Costs
Fixed Cost - $22100 / 1,300 Units	17
Variable Cost	4
Full Cost per Unit	96
Answer 3.
Variable Manufacturing Cost
Direct Labor	7
Direct Material	32
Variable Overhead	25
Variable Marketing & Admn. Costs	4
Total Variable Cost per Unit	68
Answer 4.
Variable Manufacturing Cost
Direct Labor	7
Direct Material	32
Variable Overhead	25
Fixed Manufacturing Costs
Fixed Overhead - $143000 / 1,300 Units	11
Full Absorption Cost per Unit	75
Answer 5.
Direct Labor	7
Direct Material	32
Prime Cost per Unit	39
Answer 6.
Variable Manufacturing Cost
Direct Labor	7
Variable Overhead	25
Fixed Manufacturing Costs
Fixed Overhead - $14300 / 1,300 Units	11
Total Prime Cost per Unit	43
Answer 7.
Sales Price per Unit	131
Less: Full Cost per Unit	96
Profit Margin per Unit	35
Answer 8.
Sales Price per Unit	131
Less: Variable Cost per Unit	68
Contribution margin per Unit	63
Answer 9.
Sales Price per Unit	131
Less: Absorption Cost per Unit	75
Gross Margin Per unit	56
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