(Appendix 12A) Kircher, Inc. manufactures a product with the following costs Direct materials Direct labour Variable Manufacturing overhead Fixed manufacturing overhead Variable SG&A expenses Fixed SG&A expenses Multiple Choice $72.31 $93.67 $71.90 Per unit $53,29 $24.90 13.90 2.10 The company uses the absorption costing approach to cost-plus pricing. The pricing calculations are based on budgeted production and sales of 81,000 units per year. The company has invested $220,000 in this product and expects a return on investment of 15%. The target selling price based on the absorption costing approach would be closest to which of the following? 2.00 Per year $1,182,600 1166,400
(Appendix 12A) Kircher, Inc. manufactures a product with the following costs Direct materials Direct labour Variable Manufacturing overhead Fixed manufacturing overhead Variable SG&A expenses Fixed SG&A expenses Multiple Choice $72.31 $93.67 $71.90 Per unit $53,29 $24.90 13.90 2.10 The company uses the absorption costing approach to cost-plus pricing. The pricing calculations are based on budgeted production and sales of 81,000 units per year. The company has invested $220,000 in this product and expects a return on investment of 15%. The target selling price based on the absorption costing approach would be closest to which of the following? 2.00 Per year $1,182,600 1166,400
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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8
Transcribed Image Text:(Appendix 12A) Kircher, Inc. manufactures a product with the following costs
Direct materials
Direct labour
Variable Manufacturing overhead
Fixed manufacturing overhead
Variable SG&A expenses
Fixed SG&A expenses
Multiple Choice
$72.31
$93.67
$71.90
Per unit
$53,29
$24.90
13.90
2.10
The company uses the absorption costing approach to cost-plus pricing. The pricing calculations are based on budgeted production and sales of
81,000 units per year. The company has invested $220,000 in this product and expects a return on investment of 15%. The target selling price
based on the absorption costing approach would be closest to which of the following?
2.00
Per year
$1,182,600
1166,400
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