Sunday, June 19, 2011

2. What is the total throughput contribution?

ACCOUNTING

Multiple Choice

Stober Company produces a specialty item. Management has provided the following information:

Actual sales 60,000 units

Budgeted production 50,000 units

Selling price $40.00 per unit



Direct material costs $10.00 per unit

Variable manufacturing overhead $3.00 per unit

Variable administrative costs $5.00 per unit

Fixed manufacturing overhead $4.00 per unit



What is the total throughput contribution?

a. $1,500,000

b. $1,620,000

c. $1,380,000

d. $1,800,000

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