Problem M-1 (Part Level Submission) (a) Open Show Work Problem M-1 (Part Level S

Question

Problem M-1 (Part Level Submission)

(a)

Open Show Work

Problem M-1 (Part Level Submission)

National Corporation needs to set a target price for its newly designed product M14–M16. The following data relate to this new product.
Per Unit Total Direct materials $23 Direct labor $36 Variable manufacturing overhead $14 Fixed manufacturing overhead $1,264,000 Variable selling and administrative expenses $6 Fixed selling and administrative expenses $790,000
These costs are based on a budgeted volume of 79,000 units produced and sold each year. National uses cost-plus pricing methods to set its target selling price. The markup percentage on total unit cost is 45%.

Explanation / Answer

Dear Student Thank you for using Chegg Please find below the answer and please give thumbs up   Statementshowing Computations Paticulars Amount Variable cost per unit :   Direct Materials per unit                         23.00 Direct Labor per unit                         36.00 Variable manufacturing overhead per unit                         14.00 Variable selling and administrative expenses per unit                            6.00 Total variable cost per unit                         79.00 Fixed cost per unit: Fixed manufacturing overhead = 1264000/79000                         16.00 Fixed selling and administrative expenses = 790,000/79000                         10.00 Total fixed cost per unit                         26.00 Total cost per unit                       105.00

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