ch 19 B worksheets 16th-2

The cost per unit of vee is below the target cost of

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Unformatted text preview: rovement of product quality. Negative consequences: eliminates the jobs of employees performing non-value-added work. PROBLEM 19.2B THE PARVEE COMPANY a. Target Cost: PAR Target Cost = Target Price - Target Profit Target Price = $ Target Profit = Target Cost = Target Cost: VEE Target Cost = Target Price - Target Profit Target Price = $ Target Profit = Target Cost = b. If fixed overhead is allocated based on units of production, the fixed overhead cost per unit is equal to $62.50 calculated as follows: Allocation Rate per Unit = Fixed Overhead Total Units of Production = = Total manufacturing cost per unit: PAR VEE Direct materials cost per unit …………………………………………….. Direct labor cost per unit …………………………………………………. Variable overhead cost ……………………………………………………… Fixed overhead cost ………………………………………………………. Total manufacturing cost per unit ……………………...
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