1
answer
0
watching
405
views
28 Sep 2019
McClelland Corporation uses the total cost concept of productpricing. Below is cost information for the production and sale of60,000 units of its sole product. McClelland desires a profit equalto a 21% rate of return on invested assets of $600,000.
Fixed factory overhead cost $37,500 Fixed selling and administrative costs 7,500 Variable direct materials cost per unit 4.50 Variable direct labor cost per unit 1.88 Variable factory overhead cost per unit 1.13 Variable selling and administrative cost per unit 4.50
The unit selling price for the company's product is:
McClelland Corporation uses the total cost concept of productpricing. Below is cost information for the production and sale of60,000 units of its sole product. McClelland desires a profit equalto a 21% rate of return on invested assets of $600,000.
Fixed factory overhead cost
$37,500
Fixed selling and administrative costs
7,500
Variable direct materials cost per unit
4.50
Variable direct labor cost per unit
1.88
Variable factory overhead cost per unit
1.13
Variable selling and administrative cost per unit
4.50
The unit selling price for the company's product is:
Bunny GreenfelderLv2
28 Sep 2019
