Alpha Company manufactures a single product, the Whiz Mixer kitchen appliance, which it sells for...

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Accounting

Alpha Company manufactures a single product, the Whiz Mixer kitchen appliance, which it sells for $34 per unit. Information about costs, production, and sales for the month of March is provided below:
Variable Costs
Fixed Costs
Direct materials
$11.00/unit
Manufacturing overhead
$26,000
Direct labour
$4.00/unit
Selling and Administration
$11,000
Variable manufacturing overhead
$2.75/unit
Units produced in period
5,000
Variable selling/administration
$1.00/unit
Units sold in period
5,000
Beginning inventory
$0
What is the gross margin for Alpha Company under an absorption costing system?
Question 10Answer
a.
$39,250
b.
$81,250
c.
$50,250
d.
$55,250

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