1.
Andrew Clark's shoe company has the following information:
Selling price per pair of shoes: $100
Direct materials per pair of shoes: $30
Direct labor per pair of shoes: $20
Variable Selling expense per pair of shoes: $5
Variable overhead per pair of shoes: $10
Fixed overhead per month: $10,000
Fixed Selling expenses per month: $20,000 I
n January, 2,000 pairs of shoes were produced and 1,800 pairs ofshoes were sold.
Using variable contribution margin costing, what is thecontribution margin for January?
Group of answer choices
$81,000
$63,000
$70,000
$72,000
Using absorption costing, what is the gross margin forJanuary?
Group of answer choices
$63,000
$62,010
$54,000
$36,000
2.
Brat Pack books has the following financial information for themonth of October:
Direct labor per book: $3
Direct material per book: $2
Manufacturing overhead per book: $1
Variable selling expense per book: $0.50
Fixed Manufacturing overhead: $5,000
Fixed selling expenses: $2,000
If there were 4,000 books produced and sold in October,what is the variable cost per book using the contribution marginmethod?
Group of answer choices
$5.00
$7.25
$6.00
$6.50
If there were 4,000 books produced and sold in October,what is the cost of goods sold per book using the absorptioncosting method?
Group of answer choices
$6.25
$5.00
$6.50
$7.25
3.
Reynolds Corp has the following information:
Selling price: $15 per unit
Direct labor: $4 per unit
Direct materials: $2 per unit
Fixed Manufacturing Expense: $50,000
What is their breakeven point?
Group of answer choices
8,334 Units
3,334 Units
5,000 Units
5,556 Units
