Question
La Mujer Accessories Inc. produces womens handbags. The cost of producing 1,400 handbags is as follows: Direct materials $87,100 Direct labor 40,600 Factory overhead 26,300
La Mujer Accessories Inc. produces womens handbags. The cost of producing 1,400 handbags is as follows:
Direct materials | $87,100 |
Direct labor | 40,600 |
Factory overhead | 26,300 |
Total manufacturing cost | $154,000 |
The selling and administrative expenses are $33,500. The management wants a profit equal to 26% of invested assets of $345,000.
a. Determine the amount of desired profit from the production and sale of 1,400 handbags. fill in the blank 1
b. Determine the product cost per unit for the production of 1,400 handbags. fill in the blank 2
c. Determine the product cost markup percentage for handbags. fill in the blank 3 %
d. Determine the selling price of handbags.
Cost | fill in the blank 4 | per unit |
Markup | fill in the blank 5 | per unit |
Selling price | fill in the blank 6 | per unit |
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