Product cost method of product costing MyPhone, Inc. uses the product cost method of applying the...

Transcribed Image Text:

Product cost method of product costing MyPhone, Inc. uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 4,960 cell phones are as follows: Variable costs per unit: Direct materials $78 35 Direct labor Factory overhead Selling and administrative expenses Total variable cost per unit 24 20 $157 Fixed costs: Factory overhead Selling and administrative expenses $198,400 70,000 MyPhone desires a profit equal to a 15% return on invested assets of $599,400. a. Determine the amount of desired profit from the production and sale of 4,960 cell phones. b. Determine the product cost per unit for the production of 4,960 cell phones. Round your answer to the nearest whole dollar. 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 Markup Selling price per unit per unit per unit Product cost method of product costing MyPhone, Inc. uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 4,960 cell phones are as follows: Variable costs per unit: Direct materials $78 35 Direct labor Factory overhead Selling and administrative expenses Total variable cost per unit 24 20 $157 Fixed costs: Factory overhead Selling and administrative expenses $198,400 70,000 MyPhone desires a profit equal to a 15% return on invested assets of $599,400. a. Determine the amount of desired profit from the production and sale of 4,960 cell phones. b. Determine the product cost per unit for the production of 4,960 cell phones. Round your answer to the nearest whole dollar. 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 Markup Selling price per unit per unit per unit