Exercise 15-36

The following data pertain to Royal Lighting Companys oak-clad, contemporary chandelier.

Variable manufacturing cost. $200

Applied fixed manufacturing cost ..70

Variable selling and administrative cost 30

Allocated fixed selling and administrative cost 50

Required: For each of the following cost bases, develop a cost-plus pricing formula that will result in a price of $400 for the oak chandelier.

1. Variable manufacturing cost.

2. Absorption manufacturing cost.

3. Total cost.

4. Total variable cost.