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
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 |
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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| 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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Voice Com, Inc., uses the product cost concept of applying the cost-plus approach to product pricing. The costs of producing and selling 5,070 units of cell phones are as follows:
| Variable costs: | Fixed costs: | |||||||
| Direct materials | $89 | per unit | Factory overhead | $198,300 | ||||
| Direct labor | 33 | Selling and admin. exp. | 71,800 | |||||
| Factory overhead | 27 | |||||||
| Selling and admin. exp. | 22 | |||||||
| Total variable cost per unit | $171 | per unit | ||||||
Voice Com desires a profit equal to a 14% rate of return on invested assets of $598,500.
a. Determine the amount of desired profit from the production and sale of 5,070 units of cell phones.
$
b. Determine the product cost per unit for the production of 5,070 of cell phones. If required, round your answer to nearest dollar.
$ per unit
c. Determine the product cost markup percentage (rounded to two decimal places) for cell phones.
%
d. Determine the selling price of cell phones. Round to the nearest dollar.
Cost: $____per unit
Markup $____per unit
Selling price $_____per unit
