MANAGERIAL ACCOUNTING (ACCT 10 ctice Assignment Gradebook ORION Downloadable eTe
ID: 2551853 • Letter: M
Question
MANAGERIAL ACCOUNTING (ACCT 10 ctice Assignment Gradebook ORION Downloadable eTextbook ment BACK NEXT Kaspar Corporation makes a commercial-grade cooking griddle. The following information is available for Kaspar Corporation's anticipated annual volume of 32,900 units Per Total Unit $18 $5 $13 Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses $394,800 $7 $164,500 The company uses a 44% markup percentage on total cost. Compute the total cost per unit. Total cost per unit LINK TO TEXT Compute the target selling price. (Round a nswer to 2 decimal places, e.g. 10.50.) Target selling price s MacBook ProExplanation / Answer
Answer to Part 1.
Total Cost per Unit = Variable Cost per Unit + Fixed Cost per Unit
Variable Cost per Unit = Direct Materials + Direct Labor + Variable Manufacturing Overhead + Variable Selling and Administrative Expenses
Variable Cost per Unit = $18 + $5 + $13 + $7
Variable Cost per Unit = $43
Fixed Cost per Unit = Total Fixed Cost / Units Produced
Total Fixed Cost = $394,800 + $164,500
Total Fixed Cost = $559,300
Fixed Cost per Unit = 559,300 / 32,900
Fixed Cost per Unit = $17
Total Cost per Unit = $43 + $17
Total Cost per Unit = $60
Answer to Part 2.
Target Selling Price = Total Cost + Desired Return
Target Selling Price = $60 + ($60 * 44%)
Target Selling Price = $60 + $26.40
Target Selling Price = $86.40
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