FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Skull Company makes snowboards and uses the total cost method in setting product price. Its costs for producing 14,000 units follow.
The company targets a 15.0% markup on total cost.
Variable Costs per Unit
Direct materials
$ 108
Direct labor
33
Overhead
28
Selling, general and administrative
9
Fixed Costs (total)
$ 478,000
446, 000
Overhead
Selling, general and administrative
1. Compute the total cost per unit if 14,000 units are produced.
2. Compute the dollar markup per unit.
3. Compute the selling price per unit.
(For all requirements, round your final answers to the nearest dollar amounts.)
1.
Total cost per unit
2.
Markup per unit
3
Selling price per unit
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Transcribed Image Text:Skull Company makes snowboards and uses the total cost method in setting product price. Its costs for producing 14,000 units follow. The company targets a 15.0% markup on total cost. Variable Costs per Unit Direct materials $ 108 Direct labor 33 Overhead 28 Selling, general and administrative 9 Fixed Costs (total) $ 478,000 446, 000 Overhead Selling, general and administrative 1. Compute the total cost per unit if 14,000 units are produced. 2. Compute the dollar markup per unit. 3. Compute the selling price per unit. (For all requirements, round your final answers to the nearest dollar amounts.) 1. Total cost per unit 2. Markup per unit 3 Selling price per unit
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