Chapter 25 O eBook 4 Show Me How 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 5,270 cell phones are as follows: Variable costs per unit: Fixed costs: Direct materials $71 Factory overhead $199,500 Direct labor 37 Selling and administrative expenses 70.800 Factory overhead 22 Selling and administrative expenses 22 Total variable cost per unit $152 Voice Com desires a profit equal to a 15% rate of return on invested assets of $601,600. a. Determine the amount of desired profit from the production and sale of 5,270 cell phones. $ 90,240 b. Determine the product cost per unit for the production of 5,270 of cell phones. Round your answer to the nearest whole dollar. 168 V per unit c. Determine the product cost markup percentage for cell phones. Round your answer to two decimal places. 31 x %

Chapter 25 O eBook 4 Show Me How 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 5,270 cell phones are as follows: Variable costs per unit: Fixed costs: Direct materials $71 Factory overhead $199,500 Direct labor 37 Selling and administrative expenses 70.800 Factory overhead 22 Selling and administrative expenses 22 Total variable cost per unit $152 Voice Com desires a profit equal to a 15% rate of return on invested assets of $601,600. a. Determine the amount of desired profit from the production and sale of 5,270 cell phones. $ 90,240 b. Determine the product cost per unit for the production of 5,270 of cell phones. Round your answer to the nearest whole dollar. 168 V per unit c. Determine the product cost markup percentage for cell phones. Round your answer to two decimal places. 31 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 17E: Product cost method of product costing Smart Stream Inc. uses the product cost method of applying...

See similar textbooks

Similar questions

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…
G http Chapter Review My... Sales price Contribution margin ratio Fixed costs Tra.. Vernon Company reported the following data regarding the product it sells: a. Break-even point in dollars a. Break-even point in units b. Sales in dollars b. Sales in units c. Break-even point in dollars c. Break-even point in units $60 Man... $ 10% $216,000 M Questio... Required Use the contribution margin ratio approach and consider each requirement separately. b Ans... 2,160,000 36,000 Bes... Saved a. What is the break-even point in dollars? In units? b. To obtain a profit of $54,000, what must the sales be in dollars? In units? c. If the sales price increases to $72 and variable costs do not change, what is the new break-even point in dollars? In units? US fron.
Question 4 The following data is available for the products that a company manufactures: Sales price Costs: Direct material Direct labour Variable manufacturing overhead Fixed manufacturing overhead Paragraph BI UA/ 叩く Product A $120 IIII 50 27 Material required 2.3 meters 3.0 meters 1.5 hours 1.0 hours Direct labour hours required Machine hours required 0.8 hours 0.5 hours The demand for each product exceeds the capacity of labour hours available to produce them. Required: 1. Compute the amount of contribution margin (profitability index) for Product B given the indicated constraint. 2. If the company has the indicated constraint, what are two ways they can increase capacity at the bottleneck? 16 8 Product B $140 +v 40 18 10 5
Answer the question Question 4 Company C makes and sells three types of products for which the following information is available: Standard cost and selling prices per unit: 'X' 'Y' 'Z' (RM) Product type (RM) (RM) Direct material 110 153 Direct labour department 140 Direct labour department 22d. Variable overheads Selling price 55 70 www 32 44 www 20 28 250 320 458 Fixed costs for the period are RM400,000. Direct labour from department 2, which is highly skilled, is available for 25,000 hours only in a period and is paid RM8 per hour. Both, direct labour from departments 1 and 2 are variable costs. The maximum demand for the product is: 'Z' 2,000 units 3,000 units 1,800 units 'X' 'Y' Required: (a) Calculate the shortage in hours of direct Jabour from department 2. www (b) Calculate the best production plan and the maximum profit that could be achieved from the plan.
Evaluating Selected Cost Driver Assume that a manufacturer of specialized machine parts developed the following total cost estimating equation for manufacturing costs. Y = $14,400 + $1,250 (actual units) a. What is total estimated manufacturing costs if 180 units are produced? $Answer 0
What type of cost is this? Total Costs Units January $136250 500 February $190750 700 If it is a mixed cost, enter a 1 for your answer. If it is a variable cost, enter a 2 for your answer. If it is a fixed cost, enter a 3 for your answer.
Q10 Manama Company manufactures several different products. Unit costs associated with one of these products are as follows: Direct materials Direct ma cturing labor Variable manufacturing overhead Fixed manufacturing overhead Sales commissions (2% of sales) Administrative salaries Total Required: Compute the variable manufacturing costs per unit associated with this product. Answer: For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). BIVS Paragraph 4 Arial $40 $8 $12 $23 $6 $9 $98 10pt !!! > IXO o ***
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
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%
Book Hint Ask Print erences IC raw ill L lon Chip Company produces three products, Kin, Ike, and Bix. Each product uses the same direct material. Kin uses 3.2 pounds of the material, Ike uses 3.2 pounds of the material, and Bix uses 5.5 pounds of the material. Selling price per unit and variable costs per unit of each product follow. ! A Selling price per unit Variable costs per unit (a) Compute contribution margin per pound of material for each product. (b) If demand is limited, list the three products in the order in which management should produce and meet demand. Contribution margin per pound Z dª ² Order in which management should produce and meet demand: F1 @@ 2 W S X command * F2 # 3 Kin $143.96 95.00 E D 8.0 F3 C MAR 29 $ Ike $ 120.24 94.00 4 Product Contribution Margin R a F4 F % Bix $ 204.50 144.00 5 V 9 S * 8 J DII F8 Bix ill M ( 9 K F9 O J O X A F10 L a P 4 command F11 J + optie
Sales price OMR 1000; Direct materials OMR250; Directe labor OMR 180; Variable selling cost OMR 100; Fixed selling cost OMR 200; Variable manufacturing cost OMR 150; Fixed manufacturing cost OMR 350 then we get TOTAL MANUFACTURING COST OF GOODS SOLD. O a. OMR 930 O b. OMR 520 O C. Some other answer O d. OMR 320