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In: Accounting
Air Corporation produces air purifiers. The following per unit cost information is available: direct...
Air Corporation produces air purifiers. The following per unit cost information is available: direct materials $16, direct labor $18, variable manufacturing overhead $11, variable selling and administrative expenses $6. Fixed selling and administrative expenses are $50,000, and fixed manufacturing overhead is $150,000 per year. Using a 45% markup percentage on total per unit cost and assuming 10,000 units, compute the target selling price.
Solutions
Expert Solution
| Target Selling price | 102.95 | |
| Per Unit | Total | |
| Direct Material | 16 | 160,000 |
| Direct labor | 18 | 180,000 |
| Variable manufacturing OH | 11 | 110,000 |
| Variable SELLING and ADMIN Expenses | 6 | 60,000 |
| fixed SELLING and ADMIN Expenses | 5 | 50,000 |
| Fixed manufacturing OH | 15 | 150,000 |
| Total cost | 71 | 710,000 |
| Add: Markup 45% | 31.95 | 319,500 |
| Total selling price | 102.95 | 1,029,500 |
ekkarill92 answered 2 years agoRelated Solutions
Mussatto Corporation produces snowboards. The following per unit cost information is available: direct materials $10, direct labor $12
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1) Mussatto Corporation produces snowboards.
The following per unit cost information is available: direct
materials $10, direct labor $12, variable manufacturing overhead
$7, fixed manufacturing overhead $14, variable selling and
administrative expenses $6, and fixed selling and administrative
expenses $8. Using a 41% markup percentage on total per-unit cost,
compute the target selling price. (Round answer to 2
decimal places, e.g. 10.50.) Target Selling Price
$____________
2) The...
Kurt Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $...
Kurt Corporation has provided the following information: Cost
per Unit Cost per Period Direct materials $ 6.40 Direct labor $
3.20 Variable manufacturing overhead $ 1.20 Fixed manufacturing
overhead $ 14,400 Sales commissions $ 0.40 Variable administrative
expense $ 0.45 Fixed selling and administrative expense $ 3,300 If
the selling price is $20.20 per unit, the contribution margin per
unit sold is closest to:
Multiple Choice
$6.20
$5.35
$8.55
$10.60
Learned Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $...
Learned Corporation has provided the following information:
Cost per Unit
Cost per Period
Direct materials
$
5.60
Direct labor
$
4.55
Variable manufacturing overhead
$
2.15
Fixed manufacturing overhead
$
21,000
Sales commissions
$
0.80
Variable administrative expense
$
0.70
Fixed selling and administrative expense
$
6,500
Required:
a. For financial reporting purposes, what is the total amount of
product costs incurred to make 5,000 units?
b. For financial reporting purposes, what is the total amount of
period costs incurred...
Learned Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $...
Learned Corporation has provided the following information:
Cost per Unit
Cost per Period
Direct materials
$
6.10
Direct labor
$
4.15
Variable manufacturing overhead
$
1.75
Fixed manufacturing overhead
$
27,600
Sales commissions
$
0.50
Variable administrative expense
$
0.40
Fixed selling and administrative expense
$
7,800
Required:
a. For financial reporting purposes, what is the total amount of
product costs incurred to make 6,000 units?
b. For financial reporting purposes, what is the total amount of
period costs incurred...
Learned Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $...
Learned Corporation has provided the following information:
Cost per Unit
Cost per Period
Direct materials
$
5.30
Direct labor
$
4.40
Variable manufacturing overhead
$
2.00
Fixed manufacturing overhead
$
22,000
Sales commissions
$
0.50
Variable administrative expense
$
0.40
Fixed selling and administrative expense
$
6,000
Required:
a. For financial reporting purposes, what is the total amount of
product costs incurred to make 5,000 units?
b. For financial reporting purposes, what is the total amount of
period costs incurred...
Learned Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $...
Learned Corporation has provided the following information: Cost
per Unit Cost per Period Direct materials $ 5.60 Direct labor $
4.55 Variable manufacturing overhead $ 2.15 Fixed manufacturing
overhead $ 21,000 Sales commissions $ 0.80 Variable administrative
expense $ 0.70 Fixed selling and administrative expense $ 6,500
Required: a. For financial reporting purposes, what is the total
amount of product costs incurred to make 5,000 units? b. For
financial reporting purposes, what is the total amount of period
costs incurred...
Learned Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $...
Learned Corporation has provided the following information: Cost
per Unit Cost per Period Direct materials $ 5.10 Direct labor $
4.30 Variable manufacturing overhead $ 1.90 Fixed manufacturing
overhead $ 36,000 Sales commissions $ 0.80 Variable administrative
expense $ 0.70 Fixed selling and administrative expense $ 12,600
Required: a. For financial reporting purposes, what is the total
amount of product costs incurred to make 9,000 units? b. For
financial reporting purposes, what is the total amount of period
costs incurred...
Kesterson Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $...
Kesterson Corporation has provided the following
information:
Cost per Unit
Cost per Period
Direct materials
$
6.30
Direct labor
$
3.30
Variable manufacturing overhead
$
1.25
Fixed manufacturing overhead
$
15,000
Sales commissions
$
1.30
Variable administrative expense
$
0.60
Fixed selling and administrative expense
$
4,200
If 7,000 units are produced, the total amount of indirect
manufacturing cost incurred is closest to:
Multiple Choice
$8,750
$27,950
$23,750
$15,000
Pedregon Corporation has provided the following information:
Cost per Unit
Cost...
Pedregon Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $...
Pedregon Corporation has provided the following information:
Cost per Unit
Cost per Period
Direct materials
$
6.40
Direct labor
$
3.20
Variable manufacturing overhead
$
1.20
Fixed manufacturing overhead
$
14,400
Sales commissions
$
0.40
Variable administrative expense
$
0.45
Fixed selling and administrative expense
$
3,300
If 4,500 units are sold, the total variable cost is closest
to:
Multiple Choice
$68,625
$52,425
$61,200
$48,600
Glew Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $...
Glew Corporation has provided the following information:
Cost per Unit
Cost per Period
Direct
materials
$
6.00
Direct labor
$
3.35
Variable manufacturing
overhead
$
1.75
Fixed manufacturing
overhead
$
8,800
Sales commissions
$
1.00
Variable administrative
expense
$
0.40
Fixed selling and administrative
expense
$
4,000
For financial reporting purposes, the total amount of period
costs incurred to sell 4,000 units is closest to:
Multiple Choice
$9,600
$6,400
$5,600
$4,000
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