Ayayai Corporation needs to set a target price for its newly designed product M14-M16. The following data relate to this new product. Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses (a) Variable cost per unit Fixed cost per unit Total cost per unit Per Unit $ $28 $40 These costs are based on a budgeted volume of 64,000 units produced and sold each year. Ayayai uses cost-plus pricing methods to set its target selling price. The markup percentage on total unit cost is 40%. $ $10 $7 Compute the total unit variable cost, total unit fixed cost, and total unit cost for M14-M16. Total $1,152,000 $768,000
Ayayai Corporation needs to set a target price for its newly designed product M14-M16. The following data relate to this new product. Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses (a) Variable cost per unit Fixed cost per unit Total cost per unit Per Unit $ $28 $40 These costs are based on a budgeted volume of 64,000 units produced and sold each year. Ayayai uses cost-plus pricing methods to set its target selling price. The markup percentage on total unit cost is 40%. $ $10 $7 Compute the total unit variable cost, total unit fixed cost, and total unit cost for M14-M16. Total $1,152,000 $768,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Ayayai Corporation needs to set a target price for its newly designed product M14-M16. The following data relate to this new
product.
Direct materials
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
Variable selling and administrative expenses
Fixed selling and administrative expenses
(a)
Variable cost per unit
Fixed cost per unit
These costs are based on a budgeted volume of 64,000 units produced and sold each year. Ayayai uses cost-plus pricing methods to
set its target selling price. The markup percentage on total unit cost is 40%.
Total cost per unit
Per Unit
$28
$40
$10
$
$7
Compute the total unit variable cost, total unit fixed cost, and total unit cost for M14-M16.
$
Total
$1,152,000
$768,000
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