Denise Seals Problem 16-19

Denise Seals Problem 16-19 - $75.00 x 20,000 1,500,000...

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Management Accounting Hansen and Mowen 16-19 Name: Enter the appropriate numbers in the shaded (gray) cells or select from the drop-down list. 1. Cost Units Current cost per unit $12,800,000 / 20,000 = $640 Selling price Cost per unit Current profit per unit $720 - $640 = $80 New selling price Desired profit Target cost $624 - $80 = $544 2. Nonvalue-added costs: Rate x Units Materials $21.00 x 20,000 $420,000 Labor $12.50 x 20,000 250,000 Setups
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Unformatted text preview: $75.00 x 20,000 1,500,000 Materials handling $70.00 x 20,000 1,400,000 Warranties $100.00 x 20,000 2,000,000 Total $5,570,000 Divided units produced and sold 20,000 Unit nonvalue-added cost $279 Unit Nonvalue-Current cost less Current cost added cost nonvalue-added cost = $640 -$184 = $456 Is achievement of the target cost possible? Yes Management Accounting Hansen and Mowen...
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This note was uploaded on 03/25/2010 for the course MBAC 6605 taught by Professor Smith during the Spring '10 term at Baylor.

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Denise Seals Problem 16-19 - $75.00 x 20,000 1,500,000...

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