Required information Exercise 15-35 Cost-Plus Pricing Formulas; Missing Data (LO 15-3) [The following information applies to the questions displayed below.] The following data pertain to Lawn Master Corporation's top-of-the-line lawn mower. Variable manufacturing cost Applied fixed manufacturing cost $279 59 Variable selling and administrative cost 62 Allocated fixed selling and administrative cost ? To achieve a target price of $493 per lawn mower, the markup percentage is 12.1 percent on total unit cost. Exercise 15-35 Part 1 Required: . What is the fixed selling and administrative cost allocated to each unit of Lawn Master's top-of-the-line mower? (Round your ntermediate calculations and final answer to the nearest whole dollar amount.) Allocated fixed selling and administrative cost Exercise 15-35 Part 2 53 2. For each of the following cost bases, develop a cost-plus pricing formula that will result in a target price of $493 per mower: (R your percentage answers to 2 decimal places (i.e., .1234 should be entered as 12.34).) (a) Variable manufacturing cost $ 493= (b) Absorption manufacturing cost $ 493= (c) Total variable cost $ 493- Cost-Plus Pricing Formula % % %6 X
Required information Exercise 15-35 Cost-Plus Pricing Formulas; Missing Data (LO 15-3) [The following information applies to the questions displayed below.] The following data pertain to Lawn Master Corporation's top-of-the-line lawn mower. Variable manufacturing cost Applied fixed manufacturing cost $279 59 Variable selling and administrative cost 62 Allocated fixed selling and administrative cost ? To achieve a target price of $493 per lawn mower, the markup percentage is 12.1 percent on total unit cost. Exercise 15-35 Part 1 Required: . What is the fixed selling and administrative cost allocated to each unit of Lawn Master's top-of-the-line mower? (Round your ntermediate calculations and final answer to the nearest whole dollar amount.) Allocated fixed selling and administrative cost Exercise 15-35 Part 2 53 2. For each of the following cost bases, develop a cost-plus pricing formula that will result in a target price of $493 per mower: (R your percentage answers to 2 decimal places (i.e., .1234 should be entered as 12.34).) (a) Variable manufacturing cost $ 493= (b) Absorption manufacturing cost $ 493= (c) Total variable cost $ 493- Cost-Plus Pricing Formula % % %6 X
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter11: Differential Analysis And Product Pricing
Section: Chapter Questions
Problem 23E: Variable cost method of product pricing Based on the data presented in Exercise 17, assume that...
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