A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: The total gross margin for the month under absorption costing is:
A)$163,800
B)$7,800
C)$170,800
D)$312,000

Question

A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:  The total gross margin for the month under absorption costing is:
A)$163,800 
B)$7,800 
C)$170,800 
D)$312,000

Quizplus · Accepted Answer

Unit fixed manufacturing overhead = $189,600 F1F1F1S1F1F1F10 7,900 = $24
Unit product cost = $24 + $19 + $21 + $6 = $70
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A Manufacturing Company That Produces a Single Product Has Provided