Larcker Manufacturing's cost accountant has provided you with the following information for January operations:
Direct materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $21 per unit
Fixed manufacturing overhead costs . . . . . . . . . . . . . . . . $135,000
Sales price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $79 per unit
Variable manufacturing overhead . . . . . . . . . . . . . . . . . . $12 per unit
Direct labor. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $24 per unit
Fixed marketing and administrative costs . . . . . . . . . . . . $117,000
Units produced and sold . . . . . . . . . . . . . . . . . . . . . . . . . 30,000
Variable marketing and administrative costs . . . . . . . . . . $5 per unit
Requirement:
Determine each of the following:
a. Variable cost.
b. Variable manufacturing cost.
c. Full absorption cost.
d. Full cost.
e. Profit margin.
f. Gross margin.
g. Contribution margin.