pricing as described in the text. ABC Company uses the absorption costing approach to cost-plus Fixed selling, general, and administrative costs ABC Company uses the absorption costing approach to cost-plus pricing as described in the text. 4) Assume that the company uses a markup of 80% in order to determine şelling prices. The selling price for Product Q using the absorption costing approach would be: a. P32.40 b. P45.00 P9 P180,000 C. P37.00 d. P66.60 5)Assume that the company has not yet determined a markup. Product Q requires an investment of P400,000. The company desires a 30% rate of return on investment. The markup for Product Q under the absorption costing approach to cost-plus pricing would be: a. 100.0% b. 76.0% C. 72.0% d. 80.0% nctina ABC Company makes a number'ðf products, including Product 0 The company produces and sells 20,000 units of Product O each year. The costs of Product Q at that activity level are: Per Unit Total Variable production costs Fixed production costs Variable selling, general, and administrative P15 P10 P200,000 costs P3

pricing as described in the text. ABC Company uses the absorption costing approach to cost-plus Fixed selling, general, and administrative costs ABC Company uses the absorption costing approach to cost-plus pricing as described in the text. 4) Assume that the company uses a markup of 80% in order to determine şelling prices. The selling price for Product Q using the absorption costing approach would be: a. P32.40 b. P45.00 P9 P180,000 C. P37.00 d. P66.60 5)Assume that the company has not yet determined a markup. Product Q requires an investment of P400,000. The company desires a 30% rate of return on investment. The markup for Product Q under the absorption costing approach to cost-plus pricing would be: a. 100.0% b. 76.0% C. 72.0% d. 80.0% nctina ABC Company makes a number'ðf products, including Product 0 The company produces and sells 20,000 units of Product O each year. The costs of Product Q at that activity level are: Per Unit Total Variable production costs Fixed production costs Variable selling, general, and administrative P15 P10 P200,000 costs P3

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter3: Cost Behavior And Cost Forecasting

Section: Chapter Questions

Problem 54E: Income Statements under Absorption and Variable Costing In the coming year, Kalling Company expects...

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The following product costs are available for Stellis Company on the production of erasers: direct materials, $22,000; direct labor, $35,000; manufacturing overhead, $17,500; selling expenses, $17,600; and administrative expenses; $13,400. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 13,750 equivalent units are produced, what is the equivalent material cost per unit? If 17,500 equivalent units are produced, what is the equivalent conversion cost per unit?
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