$6614.10Wesley Company makes bowling balls and uses the total cost method in setting product prices. Its costs for producing 10,000bowling balls follow. The company targets a 12.5% markup on total cost. Total cost per unit if 10,000 bowling balls are produced is:Variable Costs per UnitDirect materialsDirect laborFixed Costs (total)Overhead$ 219,000Selling, general, and administrative199,000Overhead26Selling, general, and administrative4.10Multiple Choice•$107.$117..$152•$167.$77.

Part 2: Explanation:Step 1: Calculate the total variable cost per unit by summing up the direct…

Answered: $66 14.10 Wesley Company makes bowling…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 1PB: The following product costs are available for Stellis Company on the production of erasers: direct...

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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?
SmokeCity, Inc., manufactures barbeque smokers. Based on past experience, SmokeCity has found that its total annual overhead costs can be represented by the following formula: Overhead cost = 543,000 + 1.34X, where X equals number of smokers. Last year, SmokeCity produced 20,000 smokers. Actual overhead costs for the year were as expected. Required: 1. What is the driver for the overhead activity? 2. What is the total overhead cost incurred by SmokeCity last year? 3. What is the total fixed overhead cost incurred by SmokeCity last year? 4. What is the total variable overhead cost incurred by SmokeCity last year? 5. What is the overhead cost per unit produced? 6. What is the fixed overhead cost per unit? 7. What is the variable overhead cost per unit? 8. Recalculate Requirements 5, 6, and 7 for the following levels of production: (a) 19,500 units and (b) 21,600 units. (Round your answers to the nearest cent.) Explain this outcome.
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Skull Company makes snowboards and uses the total cost method in setting product price. Its costs for producing 18,500 units follow. The company targets a 12.0% markup on total cost. Variable Costs per Unit Direct materials Direct labor Overhead Selling, general and administrative Fixed Costs (total) Overhead Selling, general and administrative $117 42 37 6 1. Total cost per unit 2. Markup per unit 3. Selling price per unit $ 463,000 425,000 1. Compute the total cost per unit if 18,500 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.)
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