Finalacct - P8-2ADoug PettonACCT 2302(Nov 19, 2007)Direct

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Unformatted text preview: P8-2ADoug PettonACCT 2302(Nov 19, 2007)Direct Materials50[a]Direct Labor252018Variable cost per unit113Total CostsCost Per UnitFixed Manufacturing ovehead600,00050,00012400,00050,0008Fixed cost per unit1,000,00050,00020Variable cost per unit113Fixed cost per unit20Total cost per unit133Desired ROI per unit(0.25*1200000)/50000 =6Markup percentage[6/133] = 4.51%Total cost per unit133Desired ROI per unit6Target selling price139[b]Total CostsCost Per UnitFixed Manufacturing ovehead600,00040,00015400,00040,00010Fixed cost per unit1,000,00040,00025Variable cost per unit113Fixed cost per unit25Total cost per unit138Desired ROI per unit(0.25*1200000)/40000 =7.50Markup percentage[7.5/138] =5.43%Total cost per unit133Desired ROI per unit6Target selling price139P8-5ADoug PettonVariable manufacturing overheadVariable selling and admin expensesBudgeted VolumeFixed selling and admin expensesBudgeted VolumeFixed selling and admin expensesACCT 2302(Nov 19, 2007)Variable cost of internal sales14-4 =10 [a]Opportunity cost22.5-14 =8.50Minimum transfer price18.50Lost contribution margin by Board Division:External cost per chip21[b]Internal cost per chip20Increased cost...
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Finalacct - P8-2ADoug PettonACCT 2302(Nov 19, 2007)Direct

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