Exercise 22-5

Schopp Corporation makes a mechanical stuffed alligator that sings the Martian national anthem. The following information is available for Schopp Corporation's anticipated annual volume of 483,000 units.

		Per Unit			Total
Direct materials		$ 6.75
Direct labor		$ 11.00
Variable manufacturing overhead		$ 14.89
Fixed manufacturing overhead					$ 3,071,880
Variable selling and administrative expenses		$ 13.97
Fixed selling and administrative expenses					$ 1,284,780

The company has a desired ROI of 24 %. It has invested assets of $ 27,594,000 .

Compute the total cost per unit. (Round answer to 2 decimal places, e.g. 10.50.)

Total cost per unit

$

LINK TO TEXT

Compute the desired ROI per unit. (Round answer to 2 decimal places, e.g. 10.50.)

Desired ROI per unit

$

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Compute the markup percentage using total cost per unit. (Round answer to 2 decimal places, e.g. 10.50.)

Markup percentage using total cost per unit

%

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Compute the target selling price. (Round answer to 2 decimal places, e.g. 10.50.)

Target selling price

$

Exercise 22-9

Rey Custom Electronics (RCE) sells and installs complete security, computer, audio, and video systems for homes. On newly constructed homes it provides bids using time-and-material pricing. The following budgeted cost data are available.

		Time Charges			Material Loading Charges
	Technicians' wages and benefits	$ 169,495			-
	Parts manager's salary and benefits	-			$ 34,700
	Office employee's salary and benefits	30,028			6,880
	Other overhead	14,982			38,947
	Total budgeted costs	$ 214,505			$ 80,527

The company has budgeted for 6,430 hours of technician time during the coming year. It desires a $ 38.26 profit margin per hour of labor and an 80% profit on parts. It estimates the total invoice cost of parts and materials in 2017 will be $ 693,000 .

Compute the rate charged per hour of labor. (Round answer to 2 decimal places, e.g. 10.50.)

Labor rate

$

per hour

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Compute the material loading percentage. (Round answer to 2 decimal places, e.g. 10.50.)

Material loading percentage

%

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RCE has just received a request for a bid from Buil Builders on a $ 1,242,000 new home. The company estimates that it would require 76 hours of labor and $ 38,200 of parts. Compute the total estimated bill. (Round answer to 2 decimal places, e.g. 10.50.)

Total estimated bill

$