The following data pertain to Lawn Master Corporation's top-of-the-line lawn mower. Variable manufacturing cost Applied fixed...

 

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The following data pertain to Lawn Master Corporation's top-of-the-line lawn mower. Variable manufacturing cost Applied fixed manufacturing cost $279 59 Variable selling and administrative cost 62 Allocated fixed selling and administrative cost To achieve a target price of $493 per lawn mower, the markup percentage is 12.1 percent on total unit cost. Exercise 15-35 Part 1 Required: 1. What is the fixed selling and administrative cost allocated to each unit of Lawn Master's top-of-the-line mower? (Round your Intermediate calculations and final answer to the nearest whole dollar amount.) Allocated fixed selling and administrative cost Exercise 15-35 Part 2 53 2. For each of the following cost bases, develop a cost-plus pricing formula that will result in a target price of $493 per mower: (Round your percentage answers to 2 decimal places (i.e., .1234 should be entered as 12.34).) (a) Variable manufacturing cost $ 493= (b) Absorption manufacturing cost $ 493= (c) Total variable cost $ 493 = Cost-Plus Pricing Formula The following data pertain to Lawn Master Corporation's top-of-the-line lawn mower. Variable manufacturing cost Applied fixed manufacturing cost $279 59 Variable selling and administrative cost 62 Allocated fixed selling and administrative cost To achieve a target price of $493 per lawn mower, the markup percentage is 12.1 percent on total unit cost. Exercise 15-35 Part 1 Required: 1. What is the fixed selling and administrative cost allocated to each unit of Lawn Master's top-of-the-line mower? (Round your Intermediate calculations and final answer to the nearest whole dollar amount.) Allocated fixed selling and administrative cost Exercise 15-35 Part 2 53 2. For each of the following cost bases, develop a cost-plus pricing formula that will result in a target price of $493 per mower: (Round your percentage answers to 2 decimal places (i.e., .1234 should be entered as 12.34).) (a) Variable manufacturing cost $ 493= (b) Absorption manufacturing cost $ 493= (c) Total variable cost $ 493 = Cost-Plus Pricing Formula

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Answer Lets calculate the allocated fixed selling and administrative cost per unit and then develop costplus pricing formulas for the given cost bases ... View the full answer