7/24/2020 Assignment Print View

 
2.  
 

Miller Company’s total sales are $204,000. The company’s direct labor cost is $24,480, which
represents 30% of its total conversion cost and 40% of its total prime cost. Its total selling and
administrative expense is $30,600 and its only variable selling and administrative expense is a sales
commission of 5% of sales. The company maintains no beginning or ending inventories and its
manufacturing overhead costs are entirely fixed costs.

Required:
1. What is the total manufacturing overhead cost?
2. What is the total direct materials cost?
3. What is the total manufacturing cost?
4. What is the total variable selling and administrative cost?
5. What is the total variable cost?
6. What is the total fixed cost?
7. What is the total contribution margin?

1. Total manufacturing overhead cost $ 57,120

2. Total direct materials cost $ 36,720
3. Total manufacturing cost $ 118,320
4. Total variable selling and administrative cost $ 10,200
5. Total variable cost $ 71,400
6. Total fixed cost $ 77,520
7. Total contribution margin

Garrison 16e Rechecks 2017-08-07

References

Worksheet Learning Objective: Learning Objective: 01-06 Prepare income

01-02 Identify and statements for a merchandising company
give examples of using the traditional and contribution
each of the three formats.
basic manufacturing
cost categories.

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7/24/2020 Assignment Print View

Difficulty: 3 Learning Objective:

Hard 01-04 Understand
cost classifications
used to predict cost
behavior: variable
costs, fixed costs,
and mixed costs.

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