Assume (1) total sales are $300,000, (2) the direct labor cost of $40,000 is 25% of total conversion costs and 20% of total prime costs, (3) the total selling and administrative expense is $62,000, (4) the only variable selling and administrative expense is sales commissions of 7% of sales, (5) all manufacturing overhead costs are fixed costs, and (6) there are no beginning or ending inventories. What is the total contribution margin? Multiple Choice $80,000 $79,000 $164,000 $20,000

Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.

Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing …

Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In compari…