Jordan Manufacturing Co. expects to make 31,000 chairs during the year 1 accounting period. The company made 4,100 chairs in January. Materials and labor costs for January were $17,600 and $24,700, respectively. Jordan produced 1,100 chairs in February. Material and labor costs for February were $9,500 and $12,300, respectively. The company paid the $775,000 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 Jordan desires to sell its chairs for cost plus 25 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

Jordan Manufacturing Co. expects to make 31,000 chairs during the year 1 accounting period. The company made 4,100 chairs in January. Materials and labor costs for January were $17,600 and $24,700, respectively. Jordan produced 1,100 chairs in February. Material and labor costs for February were $9,500 and $12,300, respectively. The company paid the $775,000 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 Jordan desires to sell its chairs for cost plus 25 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)

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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