Product Cost Method of Product Costing

MyPhone, Inc. uses the product cost method of applying the cost$-$plus approach to product pricing. The costs of producing and selling $4,770$ cell phones are as follows:

Variable costs per unit:

Line Item Description Amount

Direct materials $$73$

Direct labor $35$

Factory overhead $22$

Selling and administrative expenses $18$

Total variable cost per unit $$148$

Fixed costs:

Line Item Description Amount

Factory overhead $$199,500$

Selling and administrative expenses $70,900$

MyPhone desires a profit equal to a $15\%$ return on invested assets of $$600,500.$

a$.$ Determine the amount of desired profit from the production and sale of $4,770$ cell phones.

fill in the blank $1$ of $1$$

b$.$ Determine the product cost per unit for the production of $4,770$ cell phones. Round your answer to the nearest whole dollar.

fill in the blank $1$ of $1$$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.

Line Item Description Amount

Total 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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