Chap 12 Ex 12 0 Saved Help Save & Exit Submit Check my work Solomon Manufacturin

Question

Chap 12 Ex 12 0 Saved Help Save & Exit Submit Check my work Solomon Manufacturing Co. expects to make 31,200 chairs during the 2017 accounting period. The company made 4,400 chairs in January. Materials and labor costs for January were $16,000 and $25,900, respectively. Solomon produced 2,300 chairs in February. Material and labor costs for February were $8,300 and $12,700, respectively. The company paid the $592,800 annual rental fee on its manufacturing facility on January 1, 2017. points Required Assuming that Solomon desires to sell its chairs for cost plus 15 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.) eBank Hint January February References Price Reference links Selecting the Cost Driver Prev 1 of 1 H Next >

Explanation / Answer

Annual rental fee per unit = 592800/31200= 19 January: Material and labor costs per unit 9.52 =(16000+25900)/4400 Total cost per unit 28.52 =9.52+19 Markup 4.28 Price 32.80 February: Material and labor costs per unit 9.13 =(8300+12700)/2300 Total cost per unit 28.13 =9.13+19 Markup 4.22 Price 32.35

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.