Question: Please help! This is my second time posting this question as someone answered it wrong the first time! :(( Product Cost Method of Product Costing
Please help! This is my second time posting this question as someone answered it wrong the first time! :((
Product Cost Method of Product Costing Voice Com, Inc. uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 4,950 cell phones are as follows: Variable costs per unit: Fixed costs: Direct materials $64 Factory overhead $201,700 Direct labor 40 Selling and administrative expenses 71,700 Factory overhead 26 Selling and administrative expenses 19 Total variable cost per unit $149 Voice Com desires a profit equal to a 16% rate of return on invested assets of $600,600. a. Determine the amount of desired profit from the production and sale of 4,950 cell phones. $ 96,096 b. Determine the product cost per unit for the production of 4,950 of cell phones. Round your answer to the nearest whole dollar. $ 171 per unit c. Determine the product cost markup percentage for cell phones. Round your answer to two decimal places. % d. Determine the selling price of cell phones. Round your answers to the nearest whole dollar. Total Cost $ 171 per unit Markup per unit Selling price per unit
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