Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Product cost method of product costing Voice Com, Inc. uses the product cost method of applying the cost-plus approach to product pricing. The costs

image text in transcribed

Product cost method of product costing Voice Com, Inc. uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 4,950 cell phones are as follows: Variable costs per unit: Direct materials $85 34 Direct labor Factory overhead Selling and administrative expenses Total variable cost per unit 24 18 $161 Fixed costs: Factory overhead Selling and administrative expenses $198,300 68,200 Voice Com desires a profit equal to a 13% return on invested assets of $600,500. a. Determine the amount of desired profit from the production and sale of 4,950 cell phones. b. $ Determine the product cost per unit for the production of 4,950 cell phones. Round your answer to the nearest whole dollar. 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. Total Cost Markup Selling price per unit per unit per unit

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

Intermediate Accounting

Authors: Donald E. Kieso, Jerry J. Weygandt, And Terry D. Warfield

13th Edition

9780470374948, 470423684, 470374942, 978-0470423684

More Books

Students also viewed these Accounting questions