Question
Skull Company makes snowboards and uses the total cost method in setting product price. Its costs for producing 12,000 units follow. The company targets a
Skull Company makes snowboards and uses the total cost method in setting product price. Its costs for producing 12,000 units follow. The company targets a 15.0% markup on total cost.
| Variable Costs per Unit | |
|---|---|
| Direct materials | $ 104 |
| Direct labor | 29 |
| Overhead | 24 |
| Selling, general and administrative | 5 |
| Fixed Costs (total) | |
|---|---|
| Overhead | $ 474,000 |
| Selling, general and administrative | 438,000 |
1. Compute the total cost per unit if 12,000 units are produced. 2. Compute the dollar markup per unit. 3. Compute the selling price per unit.
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Cost Accounting A Managerial Emphasis
Authors: Madhav, Charles, Srikant
15th Edition
933254221X, 978-9332542211
