E8-23

Compu Services provides computerized inventory consulting. The office and computer expenses annually and are $625, 000 annually and are not assigned to specific jobs. The consulting hours available for the year total 20, 000. and the average consulting hour has $30 of variable costs. If the company desires a profit of $100,000. what should it charge per hour? What is the markup on variable costs if the desired profit is $150,000? It the desired profit is $60,000. what is the markup on variable costs to cover (1) unassigned costs and (2) desired profit? The predicted 2014 costs for Osaka Motors are as follows: If management desires a 12 percent rate of return on total assets, what are the markup percent ages based on total variable costs and based on total manufacturing costs? It the company desires a 10 percent rate of return on total assets, what is the markup percentage on total manufacturing costs for (1) unassigned costs and (2) desired profit? Quality Data manufactures two products. CDs and DVDs, both on the same assembly lines and packaged 10 disks per pack. The predicted sales are 400.000 packs of CDs and 500.000 packs of DVDs. The predicted costs for the year 2014 are as follows