1. Harris Company produces a single product

ACCOUNTING

Multiple Choice

Use the following information to answer this question.

Harris Company produces a single product. Last year, Harris manufactured 17,000 units and sold

13,000 units. Production costs for the year were as follows:


Production Cost Data
Direct materials
$153,000
Direct labor
$110,500
Variable manufacturing overhead
$204,000
Fixed manufacturing overhead
$255,000


Sales were $780,000 for the year, variable selling and administrative expenses were $88,400, and fixed selling and administrative expenses were $170,000. There was no beginning inventory.

Assume that direct labor is a variable cost.

The contribution margin per unit was
A. $17.50.
B. $32.50.
C. $27.30.
D. $25.70.

Click here for the SOLUTION