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P Co manufactures ring binders which are embossed with the customer's own logo. A customer has ordered a batch of 300 binders. The following data
P Co manufactures ring binders which are embossed with the customer's own logo. A customer has ordered a batch of 300 binders. The following data illustrate the cost for a typical batch of 100 binders. Direct materials Direct wages Machine set up Design and artwork $301031558 Direct employees are paid on a piecework basis. P Co absorbs production overhead at a rate of 20 per cent of direct wages cost. Five per cent is added to the total production cost of each batch to allow for selling, distribution and administration overhead. P Co requires a profit margin of 25 per cent of sales value. The selling price for a batch of 300 binders (to the nearest cent) will be ABCD$189.00$193.20$201.60$252.00
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