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The following data pertain to Tannebaum Corporation's residential humidifier: Variable manufacturing cost Applied fixed manufacturing cost Variable selling and administrative cost Allocated fixed selling and
The following data pertain to Tannebaum Corporation's residential humidifier: Variable manufacturing cost Applied fixed manufacturing cost Variable selling and administrative cost Allocated fixed selling and administrative cost $440 180 160 To achieve a target price of $870 per humidifier, the markup percentage on total unit cost is 10%. Required: A. Calculate the fixed selling and administrative cost allocated to each humidifier. B. For each of the following bases, determine the appropriate percentage markup on cost that will result in a target price of $870 per humidifier: (1) variable manufacturing cost, (2) absorption manufacturing cost, and (3) total variable cost. Complete this question by entering your answers in the tabs below. Required A Required B Calculate the fixed selling and administrative cost allocated to each humidifier. (Round your intermediate calculations and final answer to 2 decimal places.) Allocated fixed selling and administrative cost For each of the following bases, determine the appropriate percentage markup on cost that will result in a target price of $870; per humidifier: (1) variable manufacturing cost, (2) absorption manufacturing cost, and (3) total variable cost. (Round "Markup Percent" answers to 2 decimal places.) Price Cost Basis Markup Markup Percent 1. Variable manufacturing cost 2. Absorption manufacturing cost 3. Total Variable cost
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