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Answer the Following Questions Using the Information Below:
Daniel Rubber

Question 61

Multiple Choice

Answer the following questions using the information below:
Daniel Rubber Company produces a specialty item. Management has provided the following information:
 Actual sales 110,000 units  Budgeted production 100,000 units  Selling price $40.00 per unit  Direct material costs $8.00 per unit  Variable manufacturing overhead $3.00 per unit  Variable ad ministrative costs $5.00 per unit  Fixed manufacturing overhead $4.00 per unit \begin{array}{lr}\text { Actual sales } & 110,000 \text { units } \\\text { Budgeted production } & 100,000 \text { units } \\\text { Selling price } & \$ 40.00 \text { per unit } \\& \\\text { Direct material costs } & \$ 8.00 \text { per unit } \\\text { Variable manufacturing overhead } & \$ 3.00 \text { per unit } \\\text { Variable ad ministrative costs } & \$ 5.00 \text { per unit } \\\text { Fixed manufacturing overhead } & \$ 4.00 \text { per unit }\end{array}
-What is the total throughput contribution?


A) $2,640,000
B) $3,190,000
C) $3,520,000
D) $4,070,000

Correct Answer:

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