Ex. 9-8. Conversion Cost Pricing. Assume the following data for Arman's:

Materials

DirectP12.35

Indirect9.95

Labor

Direct10.25

Indirect6.65

Selling and administrative8.99

Desired mark-on25%

How much will Arman's sell its products if conversion cost pricing is adopted?

Ex 9-7. Full-Cost Pricing. June-Dine, Inc. manufactures Mppl Lester dolls. Each doll costs P35.45 broken down as follows:

Direct materialsP 20.45

Direct labor5.50

Variable overhead2.00

Fixed overhead3.25

Variable selling and administrative3.00

Fixed selling and administrative1.25

Total cost per unitP 35.45

1.Compute the selling price per doll if June-Dine decides a 12.5% mark-up on full cost.

2.How will your answer vary if mark-up is based on full production cost? Prime cost?