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Diedrich Corporation makes a product with the following costs: Per Unit Per Year $20.80 $15.20 1.30 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing
Diedrich Corporation makes a product with the following costs: Per Unit Per Year $20.80 $15.20 1.30 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses $1,252,980 4.20 $1,581,200 The company uses the absorption costing approach to cost-plus pricing described in the text. The pricing cal budgeted production and sales of 67000 units per year The company has invested $420,000 in this product and expects a return on investment of 12% Direct labor is a variable cost in this company. The selling price based on the absorption costing approach is closest to: Multiple Choice $83.80 $56.32 $84.56 $126.53 Wenner Corporation would lke to use target costing for a new product it is considering introducing. At a selling price of $44 per unit. management projects sales of 10,000 units. The new product would require an investment of $900,000 The desired return on 10% The target cost per unit is closest to: Multiple Choice $44.00 $38.50 The target cost per unit is closest to: Multiple Choice, $44.00 $38.50 $48.40 $3500 $35.00
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