1. Blues Company reported the following monthly data. Units produced 2,000 Sales price $25 per unit Direct materials $1 per unit Direct labor $2 per unit Variable overhead $3 per unit Fixed overhead $8,000 total What is Blues Company's contribution margin for this month if 980 units were sold?
2. Define standards as used in the budgeting process and give a detailed example as part of your explanation.
3. For each item shown below, indicate whether it is a product cost or a period cost,and for each item that is a product cost, also indicate whether it is a direct cost or an indirect cost with respect to a unit of finished product. a. Administrative salaries b. Direct labor c. Advertising d. Property tax on the factory e. Interest Expense