Exercise 9-9 Name:
Insert your answers into the gray-shaded cells of columns E and G. If an
answer is incorrect, the word “wrong” will appear.
a. Direct materials 150,000$
Direct labor 100,000
Manufacturing overhead 75,000
Total variable production cost 325,000$
Divided by units produced 325,000
Variable production cost per cap 1.000$
b. Contribution margin per unit:
Revenue 450,000$
Less variable costs:
Cost of goods sold 180,000$
Selling and administration 90,000 270,000
Contribution margin 180,000$
Divided by units sold 180,000
Contribution margin per unit 1.000$
c.
Sales 450,000$
Less variable costs:
Cost of goods sold 180,000$
Selling and administration 90,000 270,000
Contribution margin 180,000$
Less fixed expenses:
Manufacturing overhead 112,500$
Selling and administration 100,000 212,500
Net income (loss) (32,500)$
Top Disc
Income Statement
For Year Ended December 31, 2013
Solution