Paper Details
Aaron Company, which has only one product, has provided the following data concerning its most recent month of operations:
Selling price …………………………………….$90
Units in beginning inventory ……………….0
Units produced ……………………………..3,400
Units sold ……………………………………..3,000
Units in ending inventory ………………….400
Variable costs per unit:
Direct materials ……………………………….$21
Direct labor ………………………………………38
Variable manufacturing overhead ………….6
Variable selling and administrative ………..4
Fixed costs:
Fixed manufacturing overhead ……….$54,400
Fixed selling and administrative …………3,000
a. What is the unit product cost for the month under variable costing?
b. What is the unit product cost for the month under absorption costing?
c. The total contribution margin for the month under the variable costing approach is:
d. The total gross margin for the month under the absorption costing approach is:
e. What is the total period cost for the month under the variable costing approach?
f. What is the total period cost for the month under the absorption costing approach?
g. What is the net operating income for the month under variable costing?
h. What is the net operating income for the month under absorptioncosting?
