PROBLEM 8 - $108 Markup X 30 Desired ROI per unit $32.40(c...

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PROBLEM 8-1A (a) Direct materials ............................................................................ $20 Direct labor ................................................................................... 42 Variable manufacturing overhead .............................................. 10 Variable selling and administrative expenses .......................... 5 Variable cost per unit .................................................................. $77 Total Costs ÷ Budgeted Volume = Cost Per Unit Fixed manufacturing overhead Fixed selling and administrative expenses Fixed cost per unit $1,440,000 1,040,000 $2,480,000 ÷ ÷ ÷ 80,000 80,000 80,000 = = = $18 13 $31 Variable cost per unit .................................................................. $ 77.00 Fixed cost per unit ....................................................................... 31.00 Total cost per unit ........................................................................ $108.00 (b) Total cost per unit
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Unformatted text preview: ....................................................................... $108 Markup. ......................................................................................... X ............................................................................................. 30% Desired ROI per unit. ................................................................... $32.40 (c) Total cost per unit. ....................................................................... $108.00 Desired ROI per unit. ................................................................... 32.40 Target selling price. ..................................................................... $140.40 (d) Variable cost per unit. ........... $ 77.00 (same as above) Fixed cost per unit. ................ 41.33 ($1,440,000 + $1,040,000) ÷ 60,000 Total cost per unit. ................. $118.33...
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