Rios Company makes drones and uses the variable cost method in setting product price. Its costs for producing 33,000 units follow. The company targets a profit of $313,000 on this product. Variable Costs per Unit Direct materials Direct labor Overhead Selling, general and administrative Fixed Costs (total) Overhead Selling, general and administrative $ 83 53 38 28 $ 683,000 616,000 1. Compute the total variable cost and the markup percentage. 2. Compute the dollar markup per unit on variable cost. 3. Compute the selling price per unit.

Rios Company makes drones and uses the variable cost method in setting product price. Its costs for producing 33,000 units follow. The company targets a profit of $313,000 on this product. Variable Costs per Unit Direct materials Direct labor Overhead Selling, general and administrative Fixed Costs (total) Overhead Selling, general and administrative $ 83 53 38 28 $ 683,000 616,000 1. Compute the total variable cost and the markup percentage. 2. Compute the dollar markup per unit on variable cost. 3. Compute the selling price per unit.

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter10: Cost Analysis For Management Decision Making

Section: Chapter Questions

Problem 9P: Grand Canyon Manufacturing Inc. produces and sells a product with a price of 100 per unit. The...

See similar textbooks

Similar questions

Wrappers Tape makes two products: Simple and Removable. It estimates it will produce 369,991 units of Simple and 146,100 of Removable, and the overhead for each of its cost pools is as follows: It has also estimated the activities for each cost driver as follows: Â How much is the overhead allocated to each unit of Simple and Removable?
roduct Cost Method of Product Costing MyPhone, Inc., uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 5,160 units of cell phones are as follows: Variable costs: Fixed costs: Direct materials $90 per unit Factory overhead $199,200 Direct labor 31 Selling and admin. exp. 70,300 Factory overhead 23 Selling and admin. exp. 22 Total variable cost per unit $166 per unit MyPhone desires a profit equal to a 13% rate of return on invested assets of $600,800. a. Determine the amount of desired profit from the production and sale of 5,160 units of cell phones.$fill in the blank 1 b. Determine the product cost per unit for the production of 5,160 of cell phones. If required, round your answer to nearest dollar.$fill in the blank 2 per unit c. Determine the product cost markup percentage (rounded to two decimal places) for cell phones.fill in the blank 3 % d.…
Product Cost Method of Product Costing Voice Com, Inc., uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 5,310 units of cell phones are as follows: Variable costs: Fixed costs: Direct materials $67 per unit Factory overhead $198,000 Direct labor 37 Selling and admin. exp. 71,400 Factory overhead 22 Selling and admin. exp. 18 Total variable cost per unit $144 per unit Voice Com desires a profit equal to a 16% rate of return on invested assets of $601,800. a. Determine the amount of desired profit from the production and sale of 5,310 units of cell phones. 2$ b. Determine the product cost per unit for the production of 5,310 of cell phones. If required, round your answer to nearest dollar. per unit c. Determine the product cost markup percentage (rounded to two decimal places) for cell phones. % d. Determine the selling price of cell phones. Round to the nearest dollar. Total Cost per unit Markup per unit Selling price…
Exercise I-Set A Puerto Princesa Company must determine a target selling price for one of its products. Cost data relating to the product are as follows: Per Unit Total Direct materials P 60 Direct labor 100 30 Variable manufacturing overhead Fixed manufacturing overhead Variable administrative and selling expenses Fixed administrative and expenses 50 P4,500,000 10 40 3,600,000 The costs above are based on an anticipated volume of 90,000 units produced and sold each period. The company uses cost-plus pricing, and it has a policy of obtaining target selling prices by adding a markup of 50% of unit manufacturing cost or by adding a markup of 80% of variable costs. Required: 1. Compute the target selling price per unit using absorption costing 2. Compute the target selling price per unit using contribution costing
Question Content Area Moon Company uses the variable cost method of applying the cost-plus approach to product pricing. The costs and expenses of producing and selling 75,000 units of Product T are as follows: Variable costs per unit: Direct materials $ 7.00 Direct labor 3.50 Factory overhead 1.50 Selling and administrative expenses 3.00 Total $15.00 Fixed costs: Line Item Description Amount Factory overhead $45,000 Selling and administrative expenses 20,000 Moon desires a profit equal to an 18% return on invested assets of $1,440,000. a. Determine the amount of desired profit from the production and sale of Product T.fill in the blank 1 of 1$ b. Determine the total variable costs for the production and sale of 75,000 units of Product T.fill in the blank 1 of 1$ c. Determine the markup percentage for Product T. Round your answer to one decimal place.fill in the blank 1 of 1% d. Determine the unit selling price of Product T. Round…
Question Content Area Moon Company uses the variable cost method of applying the cost-plus approach to product pricing. The costs and expenses of producing and selling 75,000 units of Product T are as follows: Variable costs per unit: Direct materials $ 7.00 Direct labor 3.50 Factory overhead 1.50 Selling and administrative expenses 3.00 Total $15.00 Fixed costs: Line Item Description Amount Factory overhead $45,000 Selling and administrative expenses 20,000 Moon desires a profit equal to an 18% return on invested assets of $1,440,000. c. Determine the markup percentage for Product T. Round your answer to one decimal place.fill in the blank 1 of 1%
2 kipped Tirri Corporation has provided the following information: Direct materials. Direct labor Variable manufacturing overhead Fixed manufacturing overhead Sales commissions Variable administrative expense Fixed selling and administrative expense Multiple Choice O $13.35 Help If the selling price is $28.20 per unit, the contribution margin per unit sold is closest to: $8.15 $16.70 $10.05 Save & Exit Submit Cost per Uni $ 7.55 $ 3.95 $ 1.60 $ 1.10 $ 0.65
Total Cost Concept of Product Pricing Smart Stream Inc. uses the total cost concept of applying the cost-plus approach to product pricing. The costs of producing and selling 8,500 units of cellular phones are as follows: Variable costs: Fixed costs: Direct materials $ 73 per unit Factory overhead $314,500 Direct labor 34 Selling and admin. exp. 110,500 Factory overhead 22 Selling and admin. exp. 17 Total $146 per unit Smart Stream wants a profit equal to a 15% rate of return on invested assets of $932,960. a. Determine the total costs and the total cost amount per unit for the production and sale of 8,500 units of cellular phones. Round the cost per unit to two decimal places. Total costs Cost amount per unit b. Determine the total cost markup percentage (rounded to two decimal places) for cellular phones. % c. Determine the selling price of cellular phones.…
Total Cost Concept of Product Pricing Smart Stream Inc. uses the total cost concept of applying the cost-plus approach to product pricing. The costs of producing and selling 6,500 units of cellular phones are as follows: Variable costs: Fixed costs: Direct materials $ 85 per unit Factory overhead $279,000 Direct labor 39 Selling and admin. exp. 98,000 Factory overhead 26 Selling and admin. exp. 20 Total $170 per unit Smart Stream wants a profit equal to a 16% rate of return on invested assets of $833,630. a. Determine the total costs and the total cost amount per unit for the production and sale of 6,500 units of cellular phones. Round the cost per unit to two decimal places. Total costs $fill in the blank 1 Cost amount per unit $fill in the blank 2 b. Determine the total cost markup percentage (rounded to two decimal places) for cellular phones.fill in the blank 3% c. Determine the selling price of…
Product Cost Concept of Product Costing Smart Stream Inc. uses the product cost concept of applying the cost-plus approach to product pricing. The costs of producing and selling 5,490 cellular phones are as follows: Variable costs: Fixed costs: Direct materials $90 Factory overhead $199,900 Direct labor 32 Selling and administrative expenses 70,200 Factory overhead 24 Selling and administrative expenses 19 Total $165 Smart Stream wants a profit equal to a 13% rate of return on invested assets of $599,500. a. Determine the amount of desired profit from the production and sale of 5,490 cellular phones. b. Determine the product cost and the cost amount per unit for the production of 5,490 cellular phones. If required, round your answer to nearest dollar. c. Determine the product cost markup percentage for cellular phones. Rounded to two decimal places. d. Determine the selling price of cellular phones. Round to…
The following variable production costs apply to goods made by Baird Manufacturing Corporation: Item Materials Labor Variable overhead Total Units Produced Cost per Unit $15.00 Total variable cost Required Determine the total variable production cost, assuming that Baird makes 11,000, 21,000, or 31,000 units. 5.50 0.75 $21.25 11,000 Check my work 21,000 31,000
Variable Cost Concept of Product Pricing Smart Stream Inc. uses the variable 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: Variable costs: Fixed costs: Direct materials $ 70 per unit Factory overhead $194,300 Direct labor 32 Selling and admin. exp. 68,200 Factory overhead 21 Selling and admin. exp. 17 Total $140 per unit Smart Stream wants a profit equal to a 15% rate of return on invested assets of $490,000. a. Determine the variable costs and the variable cost amount per unit for the production and sale of 5,000 units of cellular phones. Round to two decimal places. Total variable costs Variable cost amount per unit b. Determine the variable cost markup percentage for cellular phones. % c. Determine the selling price of cellular phones. Round to the nearest cent. per cellular phone