eBook Show Me How Calculator Product Cost Method of Product Costing Voice Com, Inc., uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 4,590 units of cell phones are as follows: Variable costs: Fixed costs: Direct materials $88 per unit Factory overhead $199,800 Direct labor Selling and admin. exp. 70,900 Factory overhead Selling and admin. exp. Total variable cost per unit $166 per unit Voice Com desires a profit equal to a 16% rate of return on invested assets of $600,800. a. Determine the amount of desired profit from the production and sale of 4,590 units of cell phones. $ 96,128 b. Determine the product cost per unit for the production of 4,590 of cell phones. If required, round your answer to nearest dollar 224.98 X per unit c. Determine the product cost markup percentage (rounded 9.31 X % decimal places) for cell phones. d. Determine the selling price of cell 3 Total Cost X Markup eBook 3 Show Me How Calculator $ 96,128 nearest dollar. b. Determine the product cost per unit for the production of 4,590 of cell phones. If required, $ 224.98 X per unit C. Determine the product cost markup percentage (rounded to two decimal places) for cell phones. 9.31 X % d. Determine the selling price of cell phones. Round to the nearest dollar. Total Cost s x per unit Markup per unit Selling price $ 245.93 X per unit Feedback Check My Work a. Multiply the desired profit percentage by the desired amount (invested assets). b. Divide the total manufacturing (variable and fixed) costs by the number of units produced. c. Divide the desired profit plus the total selling and administrative expenses by the total manufacturing cost. d. Add cost (b) and markup [(c) (b)]. Learning Objective 2