please answer both sets of questions 1-2 and 1-3
The following data pertain to Lawn Mate Corporation's top-of-the-line lawn mower. Variable manufacturing cost Applied fixed manufacturing cost Variable selling and administrative cost Allocated fixed selling and administrative cost $260 57 52 ? To achieve a target price of $451 per lawn mower, the markup percentage is 12.7 percent on total unit cost. Exercise 15-32 Part 1 Required: 1. What is the fixed selling and administrative cost allocated to each unit of Lawn Mate's top-of-the-line mower? (Round your intermediate calculations and final answers to nearest dollar amount.) Allocated fixed selling and administrative cost The following data pertain to Lawn Mate Corporation's top-of-the-line lawn mower. Variable manufacturing cost Applied fixed manufacturing cost Variable selling and administrative cost Allocated fixed selling and administrative cost $260 57 52 To achieve a target price of $451 per lawn mower, the markup percentage is 12.7 percent on total unit cost. Exercise 15-32 Part 2 2. For each of the following cost bases, develop a cost-plus pricing formula that will result in a target price of $451 per mower. (Round your percentage values to 2 decimal places (l.e. 1234 should be entered as 12.34).) (a) Variable manufacturing cost (b) Absorption manufacturing cost (c) Total variable cost Cost-Plus Pricing Formula % OR % X Manhattan Pharmaceuticals, Inc., specializes in packaging bulk drugs in standard dosages for local hospitals. Wyant Memorial Hospital has asked Manhattan Pharmaceuticals to bid on the packaging of one million doses of medication at total cost plus a return on total cost of no more than 30 percent. Wyant defines total cost as Including all variable costs of performing the service, a reasonable amount of fixed overhead, and reasonable administrative costs. The hospital will supply all packaging materials and ingredients. Wyant's administrator has indicated that any bid over $0.06 per dose will be rejected. The controller for Manhattan Pharmaceuticals has accumulated the following data prior to the preparation of the bid. Direct labor Variable overhead Fixed overhead Incremental administrative costs Production rate $ 19.00 per direct-labor hour (DLH) $15.00 per DLH $23.00 per DLH $2,300 for the order 4,000 doses per DLH Problem 15-40 Part 1 Required: 1. Calculate the minimum price per dose that Manhattan Pharmaceuticals could bid for the Wyant Memorial Hospital job that would not reduce the pharmaceutical company's income. (Round your answer to 4 decimal places.) Minimum price per dose below.] Manhattan Pharmaceuticals, Inc., specializes in packaging bulk drugs in standard dosages for local hospitals. Wyant Memorial Hospital has asked Manhattan Pharmaceuticals to bid on the packaging of one million doses of medication at total cost plus a return on total cost of no more than 30 percent. Wyant defines total cost as including all variable costs of performing the service, a reasonable amount of fixed overhead, and reasonable administrative costs. The hospital will supply all packaging materials and ingredients. Wyant's administrator has indicated that any bid over $0.06 per dose will be rejected. The controller for Manhattan Pharmaceuticals has accumulated the following data prior to the preparation of the bid. $ 19.00 per direct-labor hour Direct labor Variable overhead Fixed overhead Incremental administrative costs Production rate (DLH) $15.00 per DLH $23.00 per DLH $2,300 for the order 4,000 doses per DLH Problem 15-40 Part 2 2. Calculate the bid price per dose using total cost and the maximum allowable return specified by Wyant Memorial Hospital. (Round your answer to 4 decimal places.) Bid price per dose dosages for local hospitals. Wyant Memorial Hospital has asked Manhattan Pharmaceuticals to bid on the packaging of one million doses of medication at total cost plus a return on total cost of no more than 30 percent. Wyant defines total cost as Including all variable costs of performing the service, a reasonable amount of fixed overhead, and reasonable administrative costs. The hospital will supply all packaging materials and ingredients. Wyant's administrator has Indicated that any bid over $0.06 per dose will be rejected. The controller for Manhattan Pharmaceuticals has accumulated the following data prior to the preparation of the bid. Direct labor Variable overhead Fixed overhead Incremental administrative costs Production rate $ 19.00 per direct-labor hour (DLH) $15.00 per DLH $23.00 per DLH $2,300 for the order 4,000 doses per DLH Problem 15-40 Part 3 3. Independent of your answer to part (2), suppose that the price per dose that Manhattan Pharmaceuticals, Inc., calculated using the cost-plus criterion specified by Wyant Memorial Hospital is greater than the maximum bid of $0.06 per dose allowed by Wyant. Discuss the factors that the pharmaceutical company's management should consider before deciding whether or not to submit a bid at the maximum price of $0.06 per dose that Wyant allows. (Select all that apply.) Whether the maximum bid of $0.06 contributes toward covering fixed costs. Fixed overhead already incurred. Whether there are available jobs on which earnings might be greater. Whether Manhattan Pharmaceuticals has excess capacity
