The following data pertain to Royal Lighting Company's oak-clad, contemporary chandelier.
Variable manufacturing cost .................................................................................................. $200
Applied fixed manufacturing cost ............................................................................................. 70
Variable selling and administrative cost .................................................................................... 30
Allocated fixed selling and administrative cost ......................................................................... 50
Required:
For each of the following cost bases, develop a cost-plus pricing formula that will result in a price of $400 for the oak chandelier.
1. Variable manufacturing cost.
2. Absorption manufacturing cost.
3. Total cost.
4. Total variable cost?