Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Diedrich Corporation makes a product with the following costs: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed

image text in transcribedimage text in transcribed

Diedrich Corporation makes a product with the following costs: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses Per Unit Per Year $19.10 $ 12.40 $ 4.90 $940,100 $ 1.00 $ 890,000 The company uses the absorption costing approach to cost-plus pricing described in the text. The pricing calculations are based on budgeted production and sales of 79,000 units per year. The company has invested $490,000 in this product and expects a return on investment of 18%. Direct labor is a variable cost in this company. The markup on absorption cost is closest to: (Round your intermediate calculations to 2 decimal places and final answer to 1 decimal place.) Multiple Choice 277% o 74.4% o 25.4% o 18.0%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

A Sneak Peek Into The Auditing World A Day Of An Auditor

Authors: Anupma Aggarwal, Adv (Dr.) Raj Kumar S Adukia

1st Edition

1648997074, 978-1648997075

More Books

Students also viewed these Accounting questions

Question

5-8 What are the advantages and disadvantages of the BYOD movement?

Answered: 1 week ago