Exercise 164 (Part Level Submission) (a1) SAVE FOR LATER SUBMIT ANSWER (a2) The

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Exercise 164 (Part Level Submission)

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SUBMIT ANSWER

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The parts of this question must be completed in order. This part will be available when you complete the part above.

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(a4)

The parts of this question must be completed in order. This part will be available when you complete the part above.

Exercise 164 (Part Level Submission)

Rita Corporation produces commercial fertilizer spreaders. The following information is available for Rita's anticipated annual volume of 400,000 units.
Per Unit Total Direct materials $32 Direct labor 54 Variable manufacturing overhead 72 Fixed manufacturing overhead $12,000,000 Variable selling and administrative expenses 34 Fixed selling and administrative expenses 7,200,000

The company has a desired ROI of 20%. It has invested assets of $120,000,000.

Explanation / Answer

Direct materials 32 Direct labor 54 Variable manufacturing overhead 72 Fixed manufacturing overhead 30 =12000000/400000 Variable selling and administrative expenses 34 Fixed selling and administrative expenses 18 =7200000/400000 Total cost per unit 240

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