ACCOUNTING
Multiple Choice
Reusser Company produces wood statues. Management has provided the following information:
Actual sales 80,000 statues
Budgeted production 100,000 statues
Selling price $20.00 per statue
Direct material costs $5.00 per statue
Variable manufacturing costs $1.50 per statue
Variable administrative costs $2.50 per statue
Fixed manufacturing overhead $2.00 per statue
What is the total throughput contribution?
a. $1,500,000
b. $2,000,000
c. $720,000
d. $1,200,000
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