Managerial Accounting: Tools for Business Decision Making
7th Edition
ISBN: 9781118334331
Author: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Publisher: WILEY
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Textbook Question
Chapter 8, Problem 8.4E
Kaspar Corporation makes a commercial-grade cooking griddle. The following information is available for Kaspar Corporations anticipated annual volume of 30,000 units.
Per Unit | Total | |
Direct materials | $17 | |
Direct labor | $ 8 | |
Variable manufacturing |
$11 | |
Fixed manufacturing overhead | $300,000 | |
Variable selling and administrative expenses | $4 | |
Fixed selling and administrative expenses | $150,000 |
The company uses a 40% markup percentage on total cost.
Instructions
(a) Compute the total cost per unit.
(b) Compute the target selling price.
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Flint Corporation makes a commercial-grade cooking griddle. The following information is available for Flint
Corporation's anticipated annual volume of 26,500 units.
Direct materials
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
Variable selling and administrative expenses $8
Fixed selling and administrative expenses
The company uses a 40% markup percentage on total cost.
(a)
Your answer is correct.
Compute the total unit cost.
Total cost per unit $
(b)
eTextbook and Media
Per Unit
$14
$6
$10
Compute the target selling price.
Target selling price $
55
Total
$291,500
$159,000
Attempts: 1 of 5 used
Skolnick Corporation has provided the following information: Cost per Unit Cost
per Period Direct materials $ 6.00 Direct labor $ 4.20 Variable manufacturing
overhead $ 1.30 Fixed manufacturing overhead $ 126,000 Sales commissions $
1.50 Variable administrative expense $ 0.35 Fixed selling and administrative
expense $ 41,400 Required: a. If 9,000 units are produced, what is the total
amount of direct manufacturing cost incurred? (Do not round intermediate
calculations.) b. If 9,000 units are produced, what is the total amount of indirect
manufacturing costs incurred?
Flint Corporation makes a commercial-grade cooking griddle. The following information is available for Flint Corporation's
anticipated annual volume of 26,500 units.
Direct materials
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
Variable selling and administrative expenses $8
Fixed selling and administrative expenses
(a)
Per Unit
The company uses a 40% markup percentage on total cost.
Compute the total unit cost.
$14
$6
$10
Total cost per unit $
Total
$291,500
$159,000
Chapter 8 Solutions
Managerial Accounting: Tools for Business Decision Making
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