Oregon Company provided the following information regarding its only product--ice skates. $$\begin{array} { l r }
\text { Direct materials used } & \$ 500,000 \
\text { Direct labor } & 180,000 \
\text { Fixed overhead } & 100,000 \
\text { Fixed selling and administrative costs } & 150,000 \
\text { Variable overhead } & 120,000 \
\text { Variable selling and administrative } & 60,000 \
\text { Selling unit price } & 75 \\
\text { Units produced and sold } & 10,000
\end{array}$$ _____ is the total manufacturing cost if the contribution approach is used.
A)$680,000
B)$800,000
C)$300,000
D)$620,000

Question

Oregon Company provided the following information regarding its only product--ice skates. $$\begin{array} { l r } 
\text { Direct materials used } & \$ 500,000 \
\text { Direct labor } & 180,000 \
\text { Fixed overhead } & 100,000 \
\text { Fixed selling and administrative costs } & 150,000 \
\text { Variable overhead } & 120,000 \
\text { Variable selling and administrative } & 60,000 \
\text { Selling unit price } & 75 \\
\text { Units produced and sold } & 10,000
\end{array}$$ _____ is the total manufacturing cost if the contribution approach is used.
A)$680,000
B)$800,000
C)$300,000
D)$620,000

Quizplus · Accepted Answer

The Answer of Oregon Company provided the following information regarding its only product--ice skates. $$\begin{array} { l r } 
\text { Direct materials used } & \$ 500,000 \
\text { Direct labor } & 180,000 \
\text { Fixed overhead } & 100,000 \
\text { Fixed selling and administrative costs } & 150,000 \
\text { Variable overhead } & 120,000 \
\text { Variable selling and administrative } & 60,000 \
\text { Selling unit price } & 75 \\
\text { Units produced and sold } & 10,000
\end{array}$$ _____ is the total manufacturing cost if the contribution approach is used.
A)$680,000
B)$800,000
C)$300,000
D)$620,000

Oregon Company Provided the Following Information Regarding Its Only Product--Ice