The following is cost and production data for the Wave Darter: Per unit Variable manufacturing cost $
Question:
The following is cost and production data for the Wave Darter:
| Per unit | | |
Variable manufacturing cost | $ | 430 | |
Applied fixed manufacturing cost | | 220 | * |
| | | |
Absorption manufacturing cost | | 650 | |
Variable selling and administrative cost | | 49 | |
Allocated fixed selling and administrative cost | | 100 | * |
| | | |
Total cost | $ | 799 | |
| | | |
Variable manufacturing cost | $ | 430 | |
Variable selling and administrative cost | | 49 | |
| | | |
Total variable cost | $ | 479 | |
| | | |
|
Based on planned monthly production of 45 units (or 540 units per year).
The target profit is $44,000.
Required:
1. Use the general formula for determining a markup percentage to compute the required markup percentage using Variable manufacturing cost. (Round your percentage values to 2 decimal places (i.e. .1234 should be entered as 12.34).)
2. Use the general formula for determining a markup percentage to compute the required markup percentage using Absorption manufacturing cost. (Round your percentage values to 2 decimal places (i.e. .1234 should be entered as 12.34).)
Principles of Cost Accounting
ISBN: 978-1305087408
17th edition
Authors: Edward J. Vanderbeck, Maria Mitchell