Question

Please show the steps and formulas thanks!!

10 Austen Company makes a single product. Each unit requires $55 of direct materials. Manufacturing overhead (MOH) cost is applied in the amount of 150% of direct labor cost. Two thirds of the MOH cost is fixed. The company had no beginning or ending inventory in August. The company reports additional information for August below: Sales quantity 8,000 units Selling price $ 300 Manufacturing cost per unit $ 130 Variable selling & administrative cost per unit at $ 50 Fixed selling & administrative cost og ba$ 290,500 al What was the total contribution margin for August? A. $ 960,000 8 $ 1.200,000 C. $ 1,600,000 D. $ 1,360,000 E. None of the above. and see red u Sales 2:400,000 VC 1,440,000 C)

Answer 1

Answer 10. B. $1,200,000

Explanation:

Let direct labor be $X

Manufacturing cost per unit = Direct material + Direct labor + Manufacturing overhead = $130

or, 55 + X + 1.5 X = 130

or, 2.5 X = 75

or , X = 30

Direct labor = 30

Manufacturing overhead = 30 * 1.5 = 45

Variable manufacturing overhead = 45 * 1 / 3 = 15

Selling price per unit	300
Less: Direct material	(55)
Less: Direct labor	(30)
Less: Manufacturing overhead	(15)
Less: Variable selling & administrative cost	(50)
Contribution per unit	150
* Number of units	8,000 units
Total contribution	$1,200,000

Answer 2. D. $6,301.20

Explanation:

Plant-wide predetermined manufacturing overhead (MOH) rate = ( Estimated total fixed MOH + Estimated total variable MOH) / Estimated DL hrs

= ($169,400 + $67,400) / 10,000 DL hrs = $23.68

Direct materials	$1,290
Direct labor	$2,880
Manufacturing overhead ($23.68 90 DLHs)	$2,131.20
Total job cost for Job T617	$6,301.20