Cullumber Corporation is in the process of setting a selling price for a recently designed product. The following data relate to this product at a budgeted volume of 60,000 units. Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses (a1) Total unit variable cost Total unit fixed cost Total unit cost $ Per Unit $ $30 Cullumber uses cost-plus pricing to set its target selling price and has a markup on total unit cost of 30%. $ 40 10 Compute total unit variable cost, total unit fixed cost, and total unit cost for the new product. 6 Total $2,220,000 1,920,000

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Cullumber Corporation is in the process of setting a selling price for a recently designed product. The following data relate to this
product at a budgeted volume of 60,000 units.
Direct materials
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
Variable selling and administrative expenses
Fixed selling and administrative expenses
(a1)
Total unit variable cost $
Total unit fixed cost
Total unit cost
Per Unit
$
$30
$
40
Cullumber uses cost-plus pricing to set its target selling price and has a markup on total unit cost of 30%.
10
6
Compute total unit variable cost, total unit fixed cost, and total unit cost for the new product.
Total
$2,220,000
1,920,000
Transcribed Image Text:Cullumber Corporation is in the process of setting a selling price for a recently designed product. The following data relate to this product at a budgeted volume of 60,000 units. Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses (a1) Total unit variable cost $ Total unit fixed cost Total unit cost Per Unit $ $30 $ 40 Cullumber uses cost-plus pricing to set its target selling price and has a markup on total unit cost of 30%. 10 6 Compute total unit variable cost, total unit fixed cost, and total unit cost for the new product. Total $2,220,000 1,920,000
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