Bonita Products desires to set atarget price for its newest product. Information for a budgeted volume of 8.000 units is shown below. Per Unit Total Direct materials $ 146 Direct labor 96 Variable manufacturing overhead 71 Fixed manufacturing overhead s s0,00 Variable selling and administrative expenses $ 45 Fixed selling and administrative expenses $ 70,000 Bonita Products uses cost-plus pricing and management wants a 25% ROI on the new product. Assets of $1,400,000 are committed to production of the new product. la) Compute the markup percentage untler variable costing that will allow Bonita Products its desired ROI. (Round answer to 2 decimal places, es. 10.50%.) Markup Percentage Save for Later Attempts: 0 of 1 used Submit Answer

Bonita Products desires to set atarget price for its newest product. Information for a budgeted volume of 8.000 units is shown below. Per Unit Total Direct materials $ 146 Direct labor 96 Variable manufacturing overhead 71 Fixed manufacturing overhead s s0,00 Variable selling and administrative expenses $ 45 Fixed selling and administrative expenses $ 70,000 Bonita Products uses cost-plus pricing and management wants a 25% ROI on the new product. Assets of $1,400,000 are committed to production of the new product. la) Compute the markup percentage untler variable costing that will allow Bonita Products its desired ROI. (Round answer to 2 decimal places, es. 10.50%.) Markup Percentage Save for Later Attempts: 0 of 1 used Submit Answer

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Silver Faces, Inc., has done a cost analysis for its production of reflectors. The following activities and cost drivers have been developed: Activity Cost Formula Maintenance $15,000 + $4 per machine hour Machining $35,000 + $1 per machine hour Inspection $60,000 + $750 per batch Setups $1,000 per batch Purchasing $50,000 + $10 per purchase order What is the budgeted maintenance cost if there was production of 50,000 reflectors that will require 8,000 machine hours, 25 batches, and 15,000 purchase orders?
Shalom Company plans to produce 50,000 units of Peace Products in 2023. Budgeted variable manufacturing costs per unit are direct materials P7, direct labor P12, and overhead P18. Annual budgeted fixed manufacturing overhead costs are P96,000 for depreciation and P45,000 for supervision. In February, Shalom produced 6,000 units and incurred the following costs: direct materials P38,900, direct labor P70,200, variable overhead P116,500, depreciation P8,000, and supervision P4,000. what is the Total fixed manufacturing overhead? what is the Direct materials: what is the Total manufacturing costs
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Shalom Company prepared its 2023 manufacturing overhead budget to produce Product Peace. Variable overhead costs per direct labor hour are Indirect materials, P3; Indirect labor, P15; Maintenance, P2. Fixed costs totaled P68,000 composed of Supervisor's salaries, P36,000; Depreciation, P20,000; Maintenance, P12,000. Producing each unit requires 2 direct labor hours. Shalom Company estimates that units to be produced for each quarter are 3,000, 3,600, 4,000, and 6,000, respectively. Amounts must be in whole numbers. Example: 88,000 or (88,000) How much is the total manufacturing overhead budget?
Stephanie Corporation sells a single product. Budgeted sales for the year are anticipated to be 634,000 units, estimated beginning inventory is 105,000 units, and desired below. ending inventory is 86,000 units. The quantities of direct materials expected to be used for each unit of finished product are given Material A 0.50 lb. per unit @ $0.73 per pound Material B 1.00 lb. per unit @ $2.24 per pound Material C 1.20 lb. per unit @ $1.21 per pound The dollar amount of material A used in production during the year is O $1,377,600 Ob $892,980 O $224,475 Od $231,410
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Flounder Possible Inc. (FP) is a manufacturer of toaster ovens. To improve control over operations, the president of FP wants to begin using a flexible budgeting system, rather than using only the current master budget. The following data are available for FP's expected costs at production levels of 81,000, 90,000, and 99,000 units. Variable costs Manufacturing $5 per unit Administrative $3 per unit Selling $3 per unit Fixed costs Manufacturing $144,000 Administrative $72,000