Product Cost Concept of Product Costing
MyPhone, Inc., uses the product cost concept of applying thecost-plus approach to product pricing. The costs of producing andselling 4,690 units of cellular phones are as follows:
Variable costs: Fixed costs: Direct materials $77 per unit Factory overhead $201,300 Direct labor 37 Selling and admin. exp. 68,100 Factory overhead 27 Selling and admin.exp. 23 Total $164 per unit
MyPhone desires a profit equal to a 14% rate of return oninvested assets of $600,900.
a. Determine the amount of desired profit fromthe production and sale of 4,690 units of cellular phones.
$
b. Determine the cost amount per unit for theproduction of 4,690 units of cellular phones. If required, roundyour answer to nearest dollar.
$ per unit
c. Determine the product cost markup percentage(rounded to two decimal places) for cellular phones.
%
d. Determine the selling price of cellularphones. Round to the nearest dollar.
Cost $ per unit Markup $ per unit Selling price $ per unit
| Product Cost Concept of Product Costing MyPhone, Inc., uses the product cost concept of applying thecost-plus approach to product pricing. The costs of producing andselling 4,690 units of cellular phones are as follows:
MyPhone desires a profit equal to a 14% rate of return oninvested assets of $600,900. a. Determine the amount of desired profit fromthe production and sale of 4,690 units of cellular phones. b. Determine the cost amount per unit for theproduction of 4,690 units of cellular phones. If required, roundyour answer to nearest dollar. c. Determine the product cost markup percentage(rounded to two decimal places) for cellular phones. d. Determine the selling price of cellularphones. Round to the nearest dollar.
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Related questions
| Product Cost Concept of Product Costing MyPhone, Inc., uses the product cost concept of applying thecost-plus approach to product pricing. The costs of producing andselling 4,740 units of cellular phones are as follows:
MyPhone desires a profit equal to a 16% rate of return oninvested assets of $601,000. a. Determine the amount of desired profit fromthe production and sale of 4,740 units of cellular phones. b. Determine the cost amount per unit for theproduction of 4,740 units of cellular phones. If required, roundyour answer to nearest dollar. c. Determine the product cost markup percentage(rounded to two decimal places) for cellular phones. d. Determine the selling price of cellularphones. Round to the nearest dollar.
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24-12
Product Cost Concept of Product Costing
Voice Com, Inc., uses the product cost concept of applying thecost-plus approach to product pricing. The costs of producing andselling 5,350 units of cellular phones are as follows:
| Variable costs: | Fixed costs: | |||||||
| Direct materials | $71 | per unit | Factory overhead | $202,000 | ||||
| Direct labor | 37 | Selling and admin. exp. | 70,500 | |||||
| Factory overhead | 27 | |||||||
| Selling and admin.exp. | 22 | |||||||
| Total | $157 | per unit | ||||||
Voice Com desires a profit equal to a 16% rate of return oninvested assets of $598,800.
a. Determine the amount of desired profit fromthe production and sale of 5,350 units of cellular phones.
$
b. Determine the cost amount per unit for theproduction of 5,350 units of cellular phones. If required, roundyour answer to nearest dollar.
$ per unit
c. Determine the product cost markup percentage(rounded to two decimal places) for cellular phones.
%
d. Determine the selling price of cellularphones. Round to the nearest dollar.
| Cost | $ per unit |
| Markup | $ per unit |
| Selling price | $ per unit |
