Question
Skull Company makes snowboards and uses the total cost method in setting product price. Its costs for producing 20,000 units follow. The company targets a
Skull Company makes snowboards and uses the total cost method in setting product price. Its costs for producing 20,000 units follow. The company targets a 14.0% markup on total cost.
| Variable Costs per Unit | |
|---|---|
| Direct materials | $ 121 |
| Direct labor | 46 |
| Overhead | 41 |
| Selling, general and administrative | 9 |
| Fixed Costs (total) | |
|---|---|
| Overhead | $ 491,000 |
| Selling, general and administrative | 469,000 |
1. Compute the total cost per unit if20,000 units are produced. 2. Compute the dollar markup per unit. 3. Compute the selling price per unit.
Total Cost Per Unit:
Markup per unit:
Selling price per unit:
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Advanced Financial Accounting An IFRS Standards Approach
Authors: Pearl Tan, Chu Yeong Lim, Ee Wen Kuah
4th Edition
9789814821278, 9814821276
