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Adams Manufacturing Co. expects to make 30,800 chairs during the year 1 accounting period. The company made 4,800 chairs in January, Materials and labor costs for January were $16,500 and $25,900, respectively. Adams produced 1,500 chairs in February. Material and labor costs for February were $8,200 and $13,700, respectively. The company paid the $708,400 annual rental fee on its manufacturing facility on January 1, year 1. The rental fee is allocated based on the total estimated number of units to be produced during the year. Required Assuming that Adams desires to sell its chairs for cost plus 30 percent of cost, what price should be charged for the chairs produced in January and February? (Round intermediate calculations and final answers to 2 decimal places.) Price per unit January February

Adams Manufacturing Co. expects to make 30,800 chairs during the year 1 accounting period. The company made 4,800 chairs in January, Materials and labor costs for January were $16,500 and $25,900, respectively. Adams produced 1,500 chairs in February. Material and labor costs for February were $8,200 and $13,700, respectively. The company paid the $708,400 annual rental fee on its manufacturing facility on January 1, year 1. The rental fee is allocated based on the total estimated number of units to be produced during the year. Required Assuming that Adams desires to sell its chairs for cost plus 30 percent of cost, what price should be charged for the chairs produced in January and February? (Round intermediate calculations and final answers to 2 decimal places.) Price per unit January February

Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter11: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 11.4C: Variable costs and activity bases in decision making The owner of Dawg Prints, a printing company,...
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Exercise 12-12A (Algo) How the allocation of fixed cost affects a pricing decision LO 12-3 Adams Manufacturing Co. expects to make 30,800 chairs during the year 1 accounting period. The company made 4,800 chairs in January, Materials and labor costs for January were $16,500 and $25,900, respectively. Adams produced 1,500 chairs in February. Material and labor costs for February were $8,200 and $13,700, respectively. The company paid the $708,400 annual rental fee on its manufacturing facility on January 1, year 1. The rental fee is allocated based on the total estimated number of units to be produced during the year. Required Assuming that Adams desires to sell its chairs for cost plus 30 percent of cost, what price should be charged for the chairs produced in January and February? (Round intermediate calculations and final answers to 2 decimal places.) Price per unit January February
Transcribed Image Text:Exercise 12-12A (Algo) How the allocation of fixed cost affects a pricing decision LO 12-3 Adams Manufacturing Co. expects to make 30,800 chairs during the year 1 accounting period. The company made 4,800 chairs in January, Materials and labor costs for January were $16,500 and $25,900, respectively. Adams produced 1,500 chairs in February. Material and labor costs for February were $8,200 and $13,700, respectively. The company paid the $708,400 annual rental fee on its manufacturing facility on January 1, year 1. The rental fee is allocated based on the total estimated number of units to be produced during the year. Required Assuming that Adams desires to sell its chairs for cost plus 30 percent of cost, what price should be charged for the chairs produced in January and February? (Round intermediate calculations and final answers to 2 decimal places.) Price per unit January February
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