Question

question 1

1 Check my work Diego Company manufactures one product that is sold for $72 per unit in two geographic regions—the East and West regions. The following information pertains to the company's first year of operations in which it produced 43,000 units and sold 38,000 units. Part 1 of 15 10 points Print Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expense $ $ 22 14 3 5 $774,000 $ 346,000

also part of question 1

Question 2

also part of question 2

question 3

also part of question 3

Answer 1

Answer:
1)
Particulars	per unit (in $ )
Direct materials	$ 22
Direct labor	$ 14
Variable manufacturing overhead	$ 3
Unit product cost under Variable costing	$ 39
2)
Particulars	per unit (in $ )
Direct materials	$ 22
Direct labor	$ 14
Variable manufacturing overhead	$ 3
Fixed manufacturing overhead ( $ 774,000 / 43,000 units )	$ 18
Unit product cost under Absorption costing	$ 57
3)
Contribution format income statement
Sales ( 38,000 units x $ 72 )		$ 2,736,000
Less: Variable expenses:
Variable cost of goods sold              ( 38,000 units x $ 72 )	($ 1,482,000)
Variable selling and administrative expenses              ( 38,000 units x $ 5)	($ 190,000)	($ 1,672,000)
Contribution margin		$ 1,064,000
Less: Fixed expenses:
Fixed Manufacturing overhead	($ 774,000)
Fixed Selling and administrative expenses	($ 346,000)	($ 1,120,000)
Net operating Loss		($ 56,000 )