Please help me Exercise 19-16 (Static) Target pricing LO P3Huds Incorporated reports the information below on its product. The company uses absorption costing and has a target markup of40% of absorption cost per unit.Direct materialsDirect laborVariable overheadFixed overheadVariable selling and administrative expensesFixed selling and administrative expensesUnits producedUnits soldCompute the target selling price per unit under absorption costing.Per unit$ 100 per unit$ 30 per unit$ 8 per unit$ 600,000 per year$3 per unit$ 120,000 per year50,000 units per year50,000 units per year

ABSORPTION COSTINGAbsorption Costing is a Cost Management Accounting method in which all costs…

Answered: Exercise 19-16 (Static) Target pricing…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 5PB: Wrappers Tape makes two products: Simple and Removable. It estimates it will produce 369,991 units...

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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 $1,440,000. a. Determine the amount of desired profit from the production and sale of Product T.fill in the blank 1 of 1$ b. Determine the total variable costs for the production and sale of 75,000 units of Product T.fill in the blank 1 of 1$ c. Determine the markup percentage for Product T. Round your answer to one decimal place.fill in the blank 1 of 1% d. Determine the unit selling price of Product T. Round…
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%
Question Content Area If variable manufacturing costs are $18 per unit and total fixed manufacturing costs are $542,700, what is the manufacturing cost per unit if: a. 6,700 units are manufactured and the company uses the variable costing concept?$fill in the blank 1 b. 8,100 units are manufactured and the company uses the variable costing concept?$fill in the blank 2 c. 6,700 units are manufactured and the company uses the absorption costing concept?$fill in the blank 3 d. 8,100 units are manufactured and the company uses the absorption costing concept?$fill in the blank 4
Exercise I-Set A Puerto Princesa Company must determine a target selling price for one of its products. Cost data relating to the product are as follows: Per Unit Total Direct materials P 60 Direct labor 100 30 Variable manufacturing overhead Fixed manufacturing overhead Variable administrative and selling expenses Fixed administrative and expenses 50 P4,500,000 10 40 3,600,000 The costs above are based on an anticipated volume of 90,000 units produced and sold each period. The company uses cost-plus pricing, and it has a policy of obtaining target selling prices by adding a markup of 50% of unit manufacturing cost or by adding a markup of 80% of variable costs. Required: 1. Compute the target selling price per unit using absorption costing 2. Compute the target selling price per unit using contribution costing
Marginal Costing and Absorption Costing Question 2 The following information is being provided by ABC Company: Direct material cost per unit OMR 20 Direct labour cost per unit OMR 8 Variable manufacturing overhead per unit OMR 2 Total fixed manufacturing overhead per year OMR 150,000 Variable selling and administration expenses OMR 2.5 per unit sold Fixed selling and administration expenses OMR 75,000 Number of units produced per year 25,000 Units Number of units sold per year 21,000 Units Opening stock of finished goods Selling price OMR 50 You are required to: A. Calculate the profit under marginal costing and absorption costing
2Given the following data, calculate the total product cost per unit under variable costing. Direct labor S3.50 per unit Direct materials S1.25 per unit Overhead Total variable overhead $41,400 Total fixed overhead $150,000 Expected units to be produced 18,000 units a.$4.75 per unit b.S7.05 per unit C.$15.38 per unit d.$13.08 per unit e.$16 per unit
Question 4 Achimota Ltd produces a single product and has the following financial information: Selling Price Cost per unit: Direct Materials Direct Labour Variable Overheads GH¢ 50 15 14 4 Fixed manufacturing overheads are GH¢40,000 per month, production volume is 10,000 units per month and sales is 9,200 units. You are required to: a) Calculate the cost per unit under: i. Absorption costing ii. Marginal costing b) Prepare the income statement of ABC Ltd under: i. Absorption costing technique ii. Marginal costing technique c) Reconcile the profits obtained under (bi) and (bii) d) Explain the reasons for the difference in profits in (c) above.
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.…
Variable manufacturing cost Applied fixed manufacturing cost Variable selling and administrative cost Allocated fixed selling and administrative cost To achieve a target price of $469 per lawn mower, the markup percentage is 11.6 percent on total unit cost. Exercise 15-35 Part 2 2. For each of the following cost bases, develop a cost-plus pricing formula that will result in a target price of $469 per mower: (Round your percentage answers to 2 decimal places (i.e., .1234 should be entered as 12.34).) (a) Variable manufacturing cost (b) Absorption manufacturing cost (c) Total variable cost $ 282 47 58 ? $ $ $ 469 469 469- Cost-Plus Pricing Formula ++ of Bad Ser je je je %
B. Find the cost of a product Different costs are presented below Direct materials $ 5.00 per unit Indirect materials $ 2.00 per unit Direct labor $ 10.00 per hour Indirect labor $ 3.00 per hour Other variable indirect costs $ 6.00 per hour Other fixed indirect costs $ 10.00 per unit Commissions to sellers $ 4.00 per unit Variable administrative costs $ 6.00 per unit Fixed Administrative Costs $ 10.00 per unit 3. If marketing studies show that the maximum price that consumers are willing to pay for this type of product is $ 48.00, determine how much cost you must reduce in order to maintain the desired% profit
B. Find the cost of a product Different costs are presented below Direct materials $ 5.00 per unit Indirect materials $ 2.00 per unit Direct labor $ 10.00 per hour Indirect labor $ 3.00 per hour Other variable indirect costs $ 6.00 per hour Other fixed indirect costs $ 10.00 per unit Commissions to sellers $ 4.00 per unit Variable administrative costs $ 6.00 per unit Fixed Administrative Costs $ 10.00 per unit 2. Determine the Sales Price if the company expects to earn 140% on cost (Markup of 140 on cost). .
ABSORPTION COSTING VERSUS THROUGHPUT COSTING The book The Goal illustrates the concept of throughput costing. For the problem below prepare all journal entries and determine the impact on the income statement of the differences between absorption costing (normal accounting) and throughput costing. HINT: pay very careful attention to definitions of throughput, inventory and operating expense from the book BUDGETED MANUFACTURING COSTS DIRECT MATERIAL $20 PER UNIT DIRECT LABOR $2 PER UNIT VARIABLE OVERHEAD $10 PER UNIT FIXED OVERHEAD $150,000 YEAR 1 NO BEGINNING INVENTORY ACTUAL COSTS OF PRODUCTION EQUALS ABOVE MANUFACTURING COSTS PURCHASE DIRECT MATERAILS OF $200,000 INCUR SELLING AND ADMIN COSTS OF $80,000 #UNITS PRODUCED 10,000 # UNITS SOLD 9,000 SALES PRICE OF UNITS SOLD $100 YEAR 2 THERE…

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