Question
In: Accounting
Bluebird Inc. uses the product cost concept of applying the cost-plus approach to product pricing. The...
Bluebird Inc. uses the product cost concept of applying the cost-plus approach to product pricing. The costs and expenses of producing 25,000 units of Product K are as follows:
Variable costs: $2.50
Direct Materials 4.25
Direct Labor 1.25
Factory Overhead 0.50
Total: 8.50
Fixed Costs $25,000
Selling and Administrative expenses 17,000
Bluebird desires a profit equal to a 5% rate of return on invested assets of $642,500
a) determine the amount of desired profit from the production and sale of Product K
b) determine the total manufacturing costs and the cost amount per unit for the production of 25,000 units of Product K
c) determine the markup percentage of Product K
d) determine the selling price of Product K
Round your markup percentage to one decimal place, and other intermediate calculations and final answer to two decimal places. SHOW WORK
Solutions
ekkarill92 answered 10 months agoRelated Solutions
RooPhone Inc. uses the product cost concept of applying the cost-plus approach to product pricing. The...
RooPhone Inc. uses the product cost concept of
applying the cost-plus approach to product pricing. The costs of
producing and selling 5,000 units of cellular phones are as
follows: (7 points)
Variable
costs Fixed
Costs:
Direct materials
$625,000 Factory
overhead $215,000
Direct
labor 225,000 Selling
& Admin.
expenses
75,000
Factory
Overhead
200,000
Selling & admin. Exp. 150,000
$1,200,000
RooPhone desires a profit equal to a 18% rate of return on
invested assets of $550,000.
Required:
a.) Determine the amount of desired profit.
b.) Determine...
RooPhone Inc. uses the product cost concept of applying the cost-plus approach to product pricing. The...
RooPhone Inc. uses the product cost concept of applying the
cost-plus approach to product pricing. The costs of producing and
selling 5,000 units of cellular phones are as follows: (7 points)
Variable costs Fixed Costs: Direct materials $625,000 Factory
overhead $215,000 Direct labor 225,000 Selling & Admin.
expenses 75,000 Factory Overhead 200,000 Selling & admin. Exp.
150,000 $1,200,000 RooPhone desires a profit equal to a 18% rate of
return on invested assets of $550,000. Required: a.) Determine the
amount of...
Willis Products Inc. uses the product cost concept of applying the cost-plus approach to product pricing....
Willis Products Inc. uses the product cost concept of applying
the cost-plus approach to product pricing. The costs of producing
and selling 2,000 units of medical tablets are as follows:
Variable costs per unit:
Fixed costs:
Direct materials
$83
Factory overhead
$58,000
Direct labor
30
Selling and admin. exp.
20,000
Factory overhead
26
Selling and admin. exp.
21
Total
$160
Willis Products desires a profit equal to a 25% rate of return
on invested assets of $116,560.
a. Determine the...
Willis Products Inc. uses the total cost concept of applying the cost-plus approach to product pricing....
Willis Products Inc. uses the total cost concept of applying the
cost-plus approach to product pricing. The costs of producing and
selling 4,000 units of medical tablets are as follows:
Variable costs per unit:
Fixed costs:
Direct materials
$99
Factory overhead
$136,000
Direct labor
36
Selling and admin. exp.
44,000
Factory overhead
30
Selling and admin. exp.
25
Total
$190
Willis Products desires a profit equal to a 20% rate of return
on invested assets of $319,600.
a. Determine the...
Hummingbird Company uses the product cost concept of applying the cost-plus approach to product pricing. The...
Hummingbird Company uses the product cost concept of applying
the cost-plus approach to product pricing. The costs and expenses
of producing 25,000 units of Product K are as follows:
Variable costs:
Direct materials
$2.50
Direct labor
4.25
Factory overhead
1.25
Selling and administrative expenses
0.50
Total
8.50
Fixed costs:
Factory overhead
$25,000
Selling and administrative expenses
17,000
Hummingbird desires a profit equal to a 5% rate of return on
invested assets of $642,500.
a. Determine the amount of desired...
MyPhone, Inc. uses the product cost method of applying the cost-plus approach to product pricing. The...
MyPhone, Inc. uses the product cost method of applying the
cost-plus approach to product pricing. The costs of producing and
selling 5,380 cell phones are as follows:
Variable costs per unit:
Fixed costs:
Direct materials
$64
Factory overhead
$198,000
Direct labor
31
Selling and administrative expenses
71,300
Factory overhead
23
Selling and administrative expenses
21
Total variable cost per unit
$139
MyPhone desires a profit equal to a 16% rate of return on
invested assets of $600,700.
a. Determine the...
MyPhone, Inc. uses the product cost method of applying the cost-plus approach to product pricing. The...
MyPhone, Inc. uses the product cost method of applying the
cost-plus approach to product pricing. The costs of producing and
selling 5,380 cell phones are as follows:
Variable costs per unit:
Fixed costs:
Direct materials
$64
Factory overhead
$198,000
Direct labor
31
Selling and administrative expenses
71,300
Factory overhead
23
Selling and administrative expenses
21
Total variable cost per unit
$139
MyPhone desires a profit equal to a 16% rate of return on
invested assets of $600,700.
a. Determine the...
Voice Com, Inc., uses the product cost method of applying the cost-plus approach to product pricing....
Voice Com, Inc., uses the product cost method of applying the
cost-plus approach to product pricing. The costs of producing and
selling 5,010 units of cell phones are as follows:
Variable costs:
Fixed costs:
Direct materials
$62
per unit
Factory overhead
$200,200
Direct labor
38
Selling and admin. exp.
69,900
Factory overhead
26
Selling and admin. exp.
20
Total variable cost per unit
$146
per unit
Voice Com desires a profit equal to a 16% rate of return on
invested...
Smart Stream Inc. uses the total cost method of applying the cost-plus approach to product pricing....
Smart Stream Inc. uses the total cost method of applying the
cost-plus approach to product pricing. The costs of producing and
selling 7,500 units of cell phones are as follows:
Variable costs:
Fixed costs:
Direct materials
$ 85
per unit
Factory overhead
$321,900
Direct labor
39
Selling and administrative
expenses
113,100
Factory overhead
26
Selling and administrative
expenses
20
Total
variable cost per unit
$170
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Smart Stream desires a profit equal to a 14% return on invested
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Product Cost Method of Product Costing Voice Com, Inc., uses the product cost concept of applying...
Product Cost Method of Product Costing
Voice Com, Inc., uses the product cost concept of applying the
cost-plus approach to product pricing. The costs of producing and
selling 4,700 units of cell phones are as follows:
Variable costs:
Fixed costs:
Direct materials
$74
per unit
Factory overhead
$200,400
Direct labor
31
Selling and admin. exp.
69,000
Factory overhead
25
Selling and admin. exp.
21
Total variable cost per unit
$151
per unit
Voice Com desires a profit equal to a...
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