Assume direct materials and direct labor are variable costs


Question - The following data are for Paso Robles Company for the year ended 2009 December 31: Costs: Direct material $ 90,000 Direct labor 130,000 Manufacturing overhead: Variable 45,000 Fixed 90,000 Sales commissions (variable) 25,000 Sales salaries (fixed) 20,000 Administrative expenses (fixed) 35,000 Selling price per unit $ 10 Units produced and sold 60,000 Assume direct materials and direct labor are variable costs. Prepare a contribution margin income statement and a traditional income statement.

Solution Preview :

Prepared by a verified Expert
Accounting Basics: Assume direct materials and direct labor are variable costs
Reference No:- TGS02889871

Now Priced at $20 (50% Discount)

Recommended (99%)

Rated (4.3/5)