Homework Chapter 25 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 5,090 cell phones are as follows: Variable costs per unit: Direct materials Direct labor Factory overhead Selling and administrative expenses Total variable cost per unit Voice Com desires a profit equal to a 16% rate of return on invested assets of $599,900. Total Cost $90 36 Markup Selling price a. Determine the amount of desired profit from the production and sale of 5,090 cell phones. $ 95,984 Feedback 23 Check My Work 23 h b. Determine the product cost per unit for the production of 5,090 of cell phones. Round your answer to the nearest whole dollar. 172 X per unit $ $ $172 244 Fixed costs: c. Determine the product cost markup percentage for cell phones. Round your answer to two decimal places. 10.80 X % d. Determine the selling price of cell phones. Round your answers to the nearest whole dollar. 172 X per unit 72 X per unit Factory overhead Selling and administrative expenses JOSEPPORN per unit $199,200 71,300 s 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)].

Product Cont 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 5,090 cell phones are as follows: Variable costs per unit: Direct materials Direct labor Factory overhead Selling and administrative expenses Total variable cost per unit Fred costs: $90 Factory overhead Selling and administrative expenses 23 23 $172 $199.200 71,300 Voice Com desires a profit equal to a 16% rate of return on imvested assets of $599,900. a. Determine the amount of desired profit from the production and sale of 5,090 cell phones. b. Determine the product cost per unit for the production of 5,090 of cell phones. Round your ariswer to the nearest whole dollar. x per unit c. Determine the product cost markup percentage for cell phones, Round your answer to two decimal places: \% d. Determine the selling price of cell phones. Round your answers to the nearest whole dollar. Total Cost x per unit Markup Selling price Fremises Toneck My wos a. Multiply the desired profit petrcentage by the desired amount (invested assets). b. Divide the total manufacturing (variable and fixed) costs by the number of units produced. Divide the desired profit plus the total selling and administrative expenses by the total manufacturing cost. d. Add cost (b) and markup {(c)(b)}