Question

Company XYZ produced and sold 8,500 units. The selling price per unit was OMR35. The variable manufacturing cost per unit was OMR10. The variable selling and administrative expenses per unit was OMR14. The total fixed expenses were OMR2,000. Calculate the total contribution margin. Select one: O a. OMR297,500 O b. OMR93,500 O c. OMR295,500 O d. OMR91,500 O e. OMR212,500

2.XYZ Company uses normal costing. Following are various cost and inventory data for the just completed year: Sales revenue OMR440,000; Adjusted gross profit OMR175,000; Selling and admin expenses OMR145,000 ; Overapplied overhead OMR15,000 ; Prime costs OMR155,000; Work in process inventory has increased by OMR10,000 ; Finished goods inventory has decreased by OMR20,000. How much is the manufacturing overhead costs applied to work in process during the year? Select one: O a. None of the answers given O b. OMR100,000 O c. OMR115,000 O d. OMR105,000 O e. OMR125,000
3.Total manufacturing costs assigned to job XYZ is OMR950; the job included 10 units. If the company uses a markup percentage of 55% of its total manufacturing costs, then what selling price per unit would it have established for job XYZ? Select one: O a. OMR52.25 O b. OMR152.00 O c. OMR95.00 O d. None of the answers given O e. OMR147.25

Answer 1

Question 1

Solution is Option b. OMR 93,500
Selling Price per unit		35	OMR
Variable manufacturing cost per unit	10
Variable selling and administrative expenses per unit	14
Total variable cost per unit		24	OMR
Contribution margin per unit (35 - 24)		11	OMR
Number of units sold		8,500	units
Total Contribution margin (8,500 * 11)		93,500	OMR