Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Kirgan, Inc., manufactures a product with the following costs: Per Year Per Unit $26.40 $15.40 $ 3.60 Direct materials Direct labor Variable manufacturing overhead Fixed

image text in transcribedimage text in transcribed

Kirgan, Inc., manufactures a product with the following costs: Per Year Per Unit $26.40 $15.40 $ 3.60 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses $1,545,600 $ 3.50 $1,514,700 The company uses the absorption costing approach to cost-plus pricing described in the text. The pricing calculations are based on budgeted production and sales of 96,000 units per year. The company has invested $370,000 in this product and expects a return on investment of 16%. The selling price based on the absorption costing approach would be closest to: (Do not round Intermediate calculations.) 10 0 0 0 $81.40 $83.20 $50.85 Magney, Inc., uses the absorption costing approach to cost-plus pricing described in the text to set prices for its products. Based on budgeted sales of 31,000 units next year, the unit product cost of a particular product is $62.80. The company's selling and administrative expenses for this product are budgeted to be $829,600 in total for the year. The company has invested $570,000 in this product and expects a return on investment of 9%. The selling price for this product based on the absorption costing approach would be closest to: (Do not round Intermediate calculations.) $121.94 $89.56

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting What the Numbers Mean

Authors: David H. Marshall, Wayne W. McManus, Daniel F. Viele

10th edition

9780077515904, 007802529X, 77515900, 978-0078025297

More Books

Students also viewed these Accounting questions