Question

The following data pertain to Legion Lighting Company’s oak-clad, contemporary chandelier.
Variable manufacturing cost................................................................. $300
Applied fixed manufacturing cost........................................................ 105
Variable selling and administrative cost.............................................. 45
Allocated fixed selling and administrative cost................................... 75

Required:
For each of the following cost bases, develop a cost-plus pricing formula that will result in a price of $600 for the oak chandelier.
1. Variable manufacturing cost.
2. Absorption manufacturing cost.
3. Total cost.
4. Total variable cost.



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  • CreatedApril 22, 2014
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