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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Head-First Company plans to sell 5,000 bicycle helmets at $75 each in the coming year. Product costs include:
Direct materials per helmet
$ 30
Direct labor per helmet
Variable factory overhead per helmet 4
Title
Total fixed factory overhead
20,000
Variable selling expense is a commission of $3 per helmet, fixed selling and administrative expense totals $29,500.
Required:
1. Calculate the total variable cost per unit.
2. Calculate the total fixed expense for the year.
3. Prepare a contribution margin income statement for Head-First Company for the coming
year.
H
Subtit
(Ctrl)](https://content.bartleby.com/qna-images/question/dbdb7a89-f026-496b-8e81-b96e3aa1d7c7/5a69e143-777c-46c4-8a88-e17b18a5d676/3dx6val_thumbnail.jpeg)
Transcribed Image Text:A.
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Paragraph
G
h
CO
1 Normal
No Spac... Heading
Heading 2
Styles
Head-First Company plans to sell 5,000 bicycle helmets at $75 each in the coming year. Product costs include:
Direct materials per helmet
$ 30
Direct labor per helmet
Variable factory overhead per helmet 4
Title
Total fixed factory overhead
20,000
Variable selling expense is a commission of $3 per helmet, fixed selling and administrative expense totals $29,500.
Required:
1. Calculate the total variable cost per unit.
2. Calculate the total fixed expense for the year.
3. Prepare a contribution margin income statement for Head-First Company for the coming
year.
H
Subtit
(Ctrl)
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- Great Outdoze Company manufactures sleeping bags, which sell for $66.10 each. The variable costs of production are as follows: Direct material Direct labor Variable manufacturing overhead $19.10 10.30 7.40 k Budgeted fixed overhead in 20x1 was $157,500 and budgeted production was 25,000 sleeping bags. The year's actual production was 25,000 units, of which 21,300 were sold. Variable selling and administrative costs were $1.30 per unit sold; fixed selling and administrative costs were $22,000. atarrow_forwardTo find the weighted average contribution margin, a company adds up the individual unit contribution margins of the different products and then divides by the total number of different products True or falsearrow_forwardSteven pulled together the following annual revenue and cost information for his small business: total variable costs $7,600, total COGS $6,000, total revenues $23,400, total fixed costs $4,700, and total SG&A $6,300. Determine the contribution margin, gross margin, and operating income for Steven for the year. Contribution margin Gross margin Operating income tA $ tA $ tA $arrow_forward
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