{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Denise Seals Problem 16-19

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

This preview shows pages 1–2. Sign up to view the full content.

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

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

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...
View Full Document

{[ snackBarMessage ]}

### Page1 / 2

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

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online