# Columbia Products produced and sold 900 units of the company's only product in March. You have collected the following information from the accounting records Sales price (per unit) Manufacturing costs \$ 448 Fixed overhead 50,400Direct labor (per unit) 35Direct materials (per unit) 112 Variable overhead (per unit) 70 (for the month) Marketing and administrative costs Fixed costs (for the month) 67,500Variable costs (per unit) 14 Required:Compute the following:____1. Variable manufacturing cost per unit \$2172. Full cost per unit 3. Variable cost per unit 4. Full absorption cost per unit. 5. Prime cost per unit. 6, Conversion cost per unit. 7. Profit margin per unit 8. Contribution margin per unit 9. Gross margin per unit

Results are below.

Explanation:

Giving the following information:

Units produced and sold= 900

Sales price (per unit) \$448

Manufacturing costs:

Direct labor (per unit) 35

Direct materials (per unit) 112

Variable overhead (per unit) 70 (for the month)

Fixed costs (for the month) 67,500

Variable costs (per unit) 14

a. Variable manufacturing cost= 35 + 112 + 70= \$217

b. Total cost:

Total variable cost= (217 + 14)*900= 207,900

Total fixed cost= 50,400 + 67,500= 117,900

Total cost= \$325,800

Total cost per unit= 325,800/900= \$362

c. Total variable cost= 217 + 14= \$231

d. The absorption costing method includes all costs related to production, both fixed and variable.

Absorption cost= 217 + (50,400/900)= \$273

e. Prime cost= direct material + direct labor

Prime cost= 112 + 35= \$147

f. Conversion cost= direct labor + unitary variable overhead

Conversion cost= 35 + 70= \$105

g. Profit margin= selling price - total unitary cost

Profit margin= 448 - 362= \$86

h. Contribution margin per unit= selling price - total unitary variable cost

Contribution margin per unit= 448 - 231= \$217

j. Gross margin per unit= Selling price - absorption cost per unit

Gross margin per unit= 448 - 273= \$175

The computations show that Columbia Products incurs a loss per unit sold and that manufacturing costs and overheads figure significantly into the total cost per unit. The company needs to increase sales price or decrease costs to attain a positive profit margin.

### Explanation:

Here's how to calculate the required costs:

1. Variable manufacturing cost per unit is already given as \$217.
2. Full cost per unit is the sum of all costs, both fixed and variable, divided by the number of units - (\$50,400 + \$67,500 + 900 * (\$217 + \$14)) / 900 = \$490.
3. Variable cost per unit includes both manufacturing cost and marketing/administrative cost - \$217 + \$14 = \$231.
4. Full absorption cost per unit considers all manufacturing costs - both variable and fixed - so (\$50,400 + 900 * \$217) / 900 = \$364.
5. The Prime cost per unit is the sum of direct labor and direct materials - \$35 + \$112 = \$147.
6. Conversion cost per unit is direct labor plus variable overhead - \$35 + \$70 = \$105.
7. The Profit margin per unit is sales price per unit minus all costs per unit - \$448 - \$490 = -\$42, which indicates a loss rather than a profit.
8. Contribution margin per unit is sales price per unit minus variable costs per unit - \$448 - \$231 = \$217.
9. Gross margin per unit is sales price per unit minus variable manufacturing cost per unit - \$448 - \$217 = \$231.

brainly.com/question/34783456

#SPJ3

## Related Questions

At the beginning of the year, a firm has current assets of \$328 and current liabilities of \$232. At the end of the year, the current assets are \$493 and the current liabilities are \$272. What is the change in net working capital?

\$125

Explanation:

Computation for the change in net working capital

Using this formula

Change in net working capital =( Ending Current asset- Ending Current liabilities) - (Beginning Current asset- Beginning Current liabilities)

Let plug in the formula

Change in net working capital =

(\$493 – \$272) – (\$328 – \$232)

Change in net working capital = \$221-\$96

Change in net working capital =\$125

Therefore the Change in net working capital will be \$125

Suppose the price level reflects the number of dollars needed to buy a basket of goods containing one can of soda, one bag of chips, and one comic book. In year one, the basket costs \$8.00. In year two, the price of the same basket is \$7.00. From year one to year two, there is at an annual rate of . In year one, \$40.00 will buy baskets, and in year two, \$40.00 will buy baskets. This example illustrates that, as the price level falls, the value of money .

Explanation:

Price of basket in year one = \$8

Price of basket in year two = \$7

So, from year one to year two there is a fall in the price level which means that there is deflation in the economy at an annual rate of :

=

= -12.50%

Value of money =

Hence, this example illustrates that, as the price level falls, the value of money increases.

Is it reasonable to assume that regardless of your relationship with your teammates, or coworkers, you will still show them respect in the workplace? Why or why not?

yes it is

Explanation:

there´s always the premise, that you have to separate your personal of your work life, so is totally reasonable that you have always to show respect to your coworkers because it helps to get better synergies between each other

Manner, Inc. has 5,000 shares of 5%, \$100 par value, noncumulative preferred stock and20,000 shares of \$1 par value common stock outstanding at December 31, 2010. Therewere no dividends declared in 2009. The board of directors declares and pays a \$45,000dividend in 2010. What is the amount of dividends received by the common stockholdersin 2010?a. \$0b. \$25,000c. \$45,000d. \$20,000

The amount of dividend is \$20,000.

Explanation:

Calculate the dividend on common stock using the equation as follows:

Dividend = Dividend Declared - (Number of Preferred shares * parvalue)*5%

=\$45,000−(5,000×\$100×5%)

=\$45,000−\$25,000

=\$20,000

To encourage employee ownership of the company's common shares, KL Corp. permits any of its employees to buy shares directly from the company through payroll deduction. There are no brokerage fees and shares can be purchased at a 12% discount. During May, employees purchased 10,000 shares at a time when the market price of the shares on the New York Stock Exchange was \$12 per share. KL will record compensation expense associated with the May purchases of:

Dr Cash 105,600

Dr Compensation Expense 14,400

Cr Common Stock 10,000

Cr Paid-In Capital – Excess of Par 110,000

Explanation:

KL Corp Journal entry

Dr Cash 105,600

Dr Compensation Expense 14,400 (10,000*12*12%)

Cr Common Stock 10,000 (10,000*1)

Cr Paid-In Capital – Excess of Par 110,000

(10,000*(12-1))

Supriya invested \$14,320 in a highly rated ETF. At the end of four years, she had \$18,434. What was her annual effective yield on this investment

6.517%

Explanation:

Present Value PV = \$14,320

Future Value FV = \$18,434

Number of period Nper = 4

Annual effective yield = Rate(Nper, Pmt, Pv, -Fv)

Annual effective yield = Rate(4, 0, 14320, -18434)

Annual effective yield = 0.06517

Annual effective yield = 6.517%