Question

Steeze Co. makes snowboards and uses the total cost approach in setting product prices. Its costs...

Steeze Co. makes snowboards and uses the total cost approach in setting product prices. Its costs for producing 20,000 units follow. The company targets a profit of $700,000 on this product.

Variable Costs per Unit Fixed Costs
Direct materials $ 125 Overhead $ 492,000
Direct labor 40 Selling 128,000
Overhead 30 Administrative 320,000
Selling 8


1. Compute the total cost per unit.
2. Compute the markup percentage on total cost. (Round your final percentage answer to 1 decimal place.)
3. Compute the product’s selling price using the total cost method.

1. Total cost per unit
2. Markup percentage
3. Selling price
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Thank You

If You have any queries please do comment

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Steeze Co. makes snowboards and uses the total cost approach in setting product prices. Its costs...
Steeze Co. makes snowboards and uses the total cost approach in setting product prices. Its costs for producing 10,500 units follow. The company targets a profit of $315,000 on this product. Variable Costs per Unit Fixed Costs Direct materials $ 101 Overhead $ 471,000 Direct labor 26 Selling 106,000 Overhead 21 Administrative 326,000 Selling 6 1. Compute the total cost per unit. 2. Compute the markup percentage on total cost. (Round your final percentage answer to 1 decimal place.) 3....
Steeze Co. makes snowboards and uses the total cost approach in setting product prices. Its costs...
Steeze Co. makes snowboards and uses the total cost approach in setting product prices. Its costs for producing 19,500 units follow. The company targets a profit of $503,100 on this product. Variable Costs per Unit Fixed Costs Direct materials $ 119 Overhead $ 480,000 Direct labor 44 Selling 120,000 Overhead 39 Administrative 336,000 Selling 8 1. Compute the total cost per unit. 2. Compute the markup percentage on total cost. (Round your final percentage answer to 1 decimal place.) 3....
Rios Co. makes drones and uses the variable cost approach in setting product prices. Its costs...
Rios Co. makes drones and uses the variable cost approach in setting product prices. Its costs for producing 42,000 units follow. The company targets a profit of $322,000 on this product. Variable Costs per Unit Fixed Costs (in total) Direct materials $ 92 Overhead $ 692,000 Direct labor 62 Selling 327,000 Overhead 47 Administrative 307,000 Selling 37 1. Compute the variable cost per unit. 2. Compute the markup percentage on variable cost. (Round percentage answer to 2 decimal places.) 3....
Rios Co. makes drones and uses the variable cost approach in setting product prices. Its costs...
Rios Co. makes drones and uses the variable cost approach in setting product prices. Its costs for producing 23,000 units follow. The company targets a profit of $303,000 on this product. Variable Costs per Unit Fixed Costs Direct materials $ 73 Overhead $ 673,000 Direct labor 43 Selling 308,000 Overhead 28 Administrative 288,000 Selling 18 1. Compute the variable cost per unit. 2. Compute the markup percentage on variable cost. 3. Compute the product’s selling price using the variable cost...
Exercise 23-15 Product pricing using variable costs LO P1 Rios Co. makes drones and uses the...
Exercise 23-15 Product pricing using variable costs LO P1 Rios Co. makes drones and uses the variable cost approach in setting product prices. Its costs for producing 26,000 units follow. The company targets a profit of $306,000 on this product. Variable Costs per Unit Fixed Costs Direct materials $ 76 Overhead $ 676,000 Direct labor 46 Selling 311,000 Overhead 31 Administrative 291,000 Selling 21 1. Compute the variable cost per unit. 2. Compute the markup percentage on variable cost. (Round...
Problem Data XYZ Co. uses the product cost concept of applying the cost-plus approach to product...
Problem Data XYZ Co. uses the product cost concept of applying the cost-plus approach to product pricing. The costs of producing and selling 10,000 units are as follows: XYZ desires profit equal to a 30% rate of return on invested assets of $1,200,000. Variable Costs per unit: Fixed costs: Direct materials $                 150 Factory Overhead $         350,000 Direct labor 25 Selling & admin. expense $         140,000 Factory overhead 40 Selling & Admin expense 25 Total $                 240 Calculations 1. Compute...
Smart Stream Inc. uses the product cost method of applying the cost-plus approach to product pricing....
Smart Stream Inc. uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 10,000 cell phones are as follows: Variable costs per unit: Fixed costs: Direct materials $150 Factory overhead $350,000 Direct labor 25 Selling and administrative expenses 140,000 Factory overhead 40 Selling and administrative expenses 25 Total variable cost per unit $240 Smart Stream desires a profit equal to a 30% return on invested assets of $1,200,000. a. Determine the...
1. Smart Stream Inc. uses the total cost concept of applying the cost-plus approach to product...
1. Smart Stream Inc. uses the total cost concept of applying the cost-plus approach to product pricing. The costs of producing and selling 8,000 units of cellular phones are as follows: Variable costs: Fixed costs:     Direct materials $ 87 per unit     Factory overhead $349,300     Direct labor 40     Selling and admin. exp. 122,700     Factory overhead 26     Selling and admin. exp. 21          Total $174 per unit Smart Stream wants a profit equal to a 15% rate of return on invested assets of...
Smart Stream Inc. uses the total cost method of applying the cost-plus approach to product pricing....
Smart Stream Inc. uses the total cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 9,000 units of cell phones are as follows: Variable costs: Fixed costs: Direct materials $ 71 per unit Factory overhead $319,700 Direct labor 33 Selling and administrative expenses 112,300 Factory overhead 21 Selling and administrative expenses 17 Total variable cost per unit $142 per unit Smart Stream desires a profit equal to a 15% return on invested assets...
Product Cost Concept of Product Pricing Willis Products Inc. uses the product cost concept of applying...
Product Cost Concept of Product Pricing Willis Products Inc. uses the product cost concept of applying the cost-plus approach to product pricing. The costs of producing and selling 3,000 units of medical tablets are as follows: Variable costs per unit: Fixed costs: Direct materials $114 Factory overhead $120,000 Direct labor 42 Selling and admin. exp. 39,000 Factory overhead 35 Selling and admin. exp. 29 Total $220 Willis Products desires a profit equal to a 20% rate of return on invested...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT