Exercise 10-14 Product pricing using total costs LO P1

Steeze Co. makes snowboards and uses the total cost approach in setting product prices. Its costs for producing 16,500 units follow. The company targets a profit of $511,500 on this product.

Variable Costs per Unit				Fixed Costs
Direct materials	$	113		Overhead	$	483,000
Direct labor		38		Selling		103,000
Overhead		33		Administrative		338,000
Selling		8

1. Compute the total cost per unit. 2. Compute the markup percentage on total cost. (Round your final percentage answer to 1 decimal place.) 3. Compute the products selling price using the total cost method.

1.	Total cost per unit
2.	Markup percentage
3.	Selling price