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Exercise 10-14 Product pricing using total costs LO P1 Steeze Co. makes snowboards and uses the total cost approach in setting product prices. Its costs
Exercise 10-14 Product pricing using total costs LO P1
Steeze Co. makes snowboards and uses the total cost approach in setting product prices. Its costs for producing 16,500 units follow. The company targets a profit of $511,500 on this product.
Variable Costs per Unit | Fixed Costs | ||||||
Direct materials | $ | 113 | Overhead | $ | 483,000 | ||
Direct labor | 38 | Selling | 103,000 | ||||
Overhead | 33 | Administrative | 338,000 | ||||
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 products selling price using the total cost method.
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