ANSWER: number of units 1,200.

00
1 Variable Manufacturing cost per
As to total per unit
Direct Materials $ 268,800.00 $ 224.00 Direct Materials
Direct Labor $ 84,000.00 $ 70.00 Direct Labor
Factory Overhead Variable Manufacturing
Fixed Overhead $ 100,800.00 $ 84.00 Variable Manufacturing
Variable Overhead $ 168,000.00 $ 140.00
Total Manufacturing Cost $ 621,600.00 $ 518.00 2 Total Manufacturing cost per un
Marketing and Administrative Costs
Fixed Cost $ 134,400.00 $ 112.00 Direct Materials
Variable Cost $ 33,600.00 $ 28.00 Direct Labor
Total Cost $ 789,600.00 $ 658.00 Manufacturing overhea
Total Manufacturing co

As to total per unit 3 Variable cost per unit

Sales $ 1,075,200.00 $ 896.00
Variable Costs $ 554,400.00 $ 462.00 Direct Materials
Contribution Margin $ 520,800.00 $ 434.00 Direct Labor
Fixed Costs $ 235,200.00 $ 196.00 Variable Manufacturing
Profit Margin $ 285,600.00 $ 238.00 Variable Marketing and
Variable cost per unit

4 Total cost per unit

As to total per unit
Sales $ 1,075,200.00 $ 896.00 Direct Materials
Cost of goods Sold $ 621,600.00 $ 518.00 Direct Labor
Gross Margin $ 453,600.00 $ 378.00 Factory Overhead
Operating Expense $ 168,000.00 $ 140.00
Profit Margin $ 285,600.00 $ 238.00
Total Manufacturing Co
Marketing and Adminis

Total cost per unit

5 Prime Cost

Direct Materials
Direct Labor
Prime Cost per unit
riable Manufacturing cost per unit 6 Conversion Cost per unit

Direct Materials $ 224.00 Direct Labor

Direct Labor $ 70.00 Factory Overhead
Variable Manufacturing overhead $ 140.00 Conversion Cost per unit
Variable Manufacturing cost per unit $ 434.00

tal Manufacturing cost per unit 7 Profit margin per unit

Direct Materials $ 224.00 Sales

Direct Labor $ 70.00 Variable Costs
Manufacturing overhead $ 224.00 Contribution Margin
Total Manufacturing cost per unit $ 518.00 Fixed Costs
Profit margin per unit
riable cost per unit
8 Contribution margin per unit
Direct Materials $ 224.00
Direct Labor $ 70.00 Sales
Variable Manufacturing overhead $ 140.00 Variable Costs
Variable Marketing and Administrative Cost $ 28.00 Contribution margin per unit
Variable cost per unit $ 462.00

tal cost per unit 9 Gross Margin per unit

Direct Materials $ 224.00 Sales

Direct Labor $ 70.00 Cost of goods Sold
Factory Overhead Gross Margin per unit
Fixed Overhead $ 84.00
Variable Overhead $ 140.00
Total Manufacturing Cost $ 518.00
Marketing and Administrative Costs Fixed Manufacturing Cost
Fixed Cost $ 112.00 Number of units produced
Variable Cost $ 28.00 Fixed Manufacturing Cost per unit
Total cost per unit $ 658.00

Direct Materials $ 224.00

Direct Labor $ 70.00
Prime Cost per unit $ 294.00
n Cost per unit

$ 70.00
ctory Overhead $ 224.00
nversion Cost per unit $ 294.00

gin per unit

$ 896.00
$ 462.00
ntribution Margin $ 434.00
$ 196.00
ofit margin per unit $ 238.00

on margin per unit

$ 896.00
$ 462.00
ntribution margin per unit $ 434.00

gin per unit

$ 896.00
st of goods Sold $ 518.00
oss Margin per unit $ 378.00

ed Manufacturing Cost $ 100,800.00

mber of units produced 1,200
ed Manufacturing Cost per unit $ 84.00
ANSWER: number of units 800

As to total per unit

Direct Materials $ 179,200.00 $ 224.00
Direct Labor $ 56,000.00 $ 70.00
Factory Overhead
Fixed Overhead $ 100,800.00 $ 126.00
Variable Overhead $ 112,000.00 $ 140.00
Total Manufacturing Cost $ 448,000.00 $ 560.00
Marketing and Administrative Costs
Fixed Cost $ 134,400.00 $ 168.00
Variable Cost $ 22,400.00 $ 28.00
Total Cost $ 604,800.00 $ 756.00

As to total per unit

Sales $ 716,800.00 $ 896.00
Variable Costs $ 369,600.00 $ 462.00
Contribution Margin $ 347,200.00 $ 434.00
Fixed Costs $ 235,200.00 $ 294.00
Profit Margin $ 112,000.00 $ 140.00

As to total per unit

Sales $ 716,800.00 $ 896.00
Cost of goods Sold $ 448,000.00 $ 560.00
Gross Margin $ 268,800.00 $ 336.00
Operating Expense $ 156,800.00 $ 196.00
Profit Margin $ 112,000.00 $ 140.00
 Answer:
If the number of units produced during the month decreases from 1200 to 800 units, the
fixed manufacturing cost per unit increases from 84 to 126 per unit. This is so because the
total amount of fixed manufacturing overhead cost (100,800) being allocated to the
number of units remains constant regardless of the change in volume, hence, fixed cost
per unit changes in an indirect or inverse pattern, depending on the direction of the
change in activity level. In this case, the fixed manufacturing cost per unit increases as the
number of units produced decreases.

Fixed Manufacturing Cost $ 100,800.00

Number of units produced 800
Fixed Manufacturing Cost per unit $ 126.00
ANSWER: number of units 1,500.00

As to total per unit

Direct Materials 336,000.00 224.00
Direct Labor 105,000.00 70.00
Factory Overhead
Fixed Overhead 100,800.00 67.20
Variable Overhead 210,000.00 140.00
Total Manufacturing Cost 751,800.00 501.20
Marketing and Administrative Costs
Fixed Cost 134,400.00 89.60
Variable Cost 42,000.00 28.00
Total Cost 928,200.00 618.80

As to total per unit

Sales 1,344,000.00 896.00
Variable Costs 693,000.00 462.00
Contribution Margin 651,000.00 434.00
Fixed Costs 235,200.00 156.80
Profit Margin 415,800.00 277.20

As to total per unit

Sales 1,344,000.00 896.00
Cost of goods Sold 751,800.00 501.20
Gross Margin 592,200.00 394.80
Operating Expense 176,400.00 117.60
Profit Margin 415,800.00 277.20
 Answer:
If the number of units produced during the month increases from 1200 to 1500 units, the
fixed manufacturing cost per unit decreases from 84 to 67.20 per unit. This is so because the
total amount of fixed manufacturing overhead cost (100,800) being allocated to the number
of units remains constant regardless of the change in volume, hence, fixed cost per unit
changes in an indirect or inverse pattern, depending on the direction of the change in activity
level. In this case, the fixed manufacturing cost per unit decreases as the number of units
produced increases.

Fixed Manufacturing Cost $ 100,800.00

Number of units produced 1,500
Fixed Manufacturing Cost per unit $ 67.20
Sales Price (per unit) 896
Manufacturing Costs:
Fixed Overhead (for the month) 100,800
Direct Labor (per unit) 70
Direct Materials (per unit) 224
Variable Overhead (per unit) 140
Marketing and Administrative Costs:
Fixed Cost (for the month) 134,400
Variable Costs (per unit) 28