Calculate markup percentage using absorption-cost pricing and variable-costpricing.E9.32 (LO 3, 4) Firefly Corporation produces outdoor portable fireplace units. Thefollowing cost information per unit is available: direct materials $21, direct labour $26,variable manufacturing overhead $16, fixed manufacturing overhead $22, variableselling and administrative expenses $9, and fixed selling and administrative expenses$15. The company's ROI per unit is $20.InstructionsCalculate Firefly Corporation's markup percentage using (a) absorption-cost pricingand (b) variable-cost pricing.

Absorption costing: Absorption costing is also called traditional costing. This method of costing…

Answered: Calculate markup percentage using…

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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Given the following cost and activity observations for Bounty Company's utilities, use the high-low method to determine Bounty's variable utilities cost per machine hour. Round your answer to the nearest cent. Cost Machine Hours March $3,091 14,781 April 2,676 9,929 May 2,812 11,845 June 3,520 17,889 a.$0.49 b.$0.53 c.$0.11 d.$1.17
Connell Co. collects the following data concerning a mixed cost, using miles as the activity level. Miles Driven Total Cost January 10,000 $17,000 February 8,000 $13,500 March 9,000 $14,400 April 7,000 $12,500 Instructions: Compute the variable and fixed cost elements using the high-low method.
The following data pertain to Royal Lighting Company's oak-clad, contemporary chandelier. Variable manufacturing cost Applied fixed manufacturing cost Variable selling and administrative cost Allocated fixed selling and administrative cost Required: For each of the following cost bases, develop a cost-plus pricing formula that will result in a price of $735 for the oak chandelier. (Round your percentage answers to 2 decimal places (i.e., .1234 should be entered as 12.34).) 1. Variable manufacturing cost 2. Absorption manufacturing cost 3. Total cost 4. Total variable cost $ $ $ $ 735 = 735 735 735 Cost-Plus Pricing Formula + + $350 105 57 87 + + ( ( % % % x % x
If variable manufacturing costs are $13 per unit and total fixed manufacturing costs are $198,900, what is the manufacturing cost per unit if: a. 3,900 units are manufactured and the company uses the variable costing concept?$fill in the blank 1 b. 5,100 units are manufactured and the company uses the variable costing concept?$fill in the blank 2 c. 3,900 units are manufactured and the company uses the absorption costing concept?$fill in the blank 3 d. 5,100 units are manufactured and the company uses the absorption costing concept?$fill in the blank 4
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Denjar
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Using variable costing, service company Sherman Company provides carpet cleaning services to commercial and residential customers. Using the data below, determine the contribution margin ratio for each business segment, rounded to two decimal places:
Bruno Company accumulates the following data concerning a mixed cost, using miles as the activity level. Miles Driven Total Cost January 8,015 February 7,510 $14,195 13,515 Miles Driven Total Cost March 8,500 $15,000 April 8,205 14,495 a. Compute the variable cost per mile using the high-low method. b. Compute the fixed cost elements using the high-low method.
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Deep Sea manufactures flotation vests in Charleston, South Carolina. Deep Sea's contribution margin income statement for the month ended March 31, 2024, contains the following data: (Click the icon to view the cost information.) Read the requirements. Requirement 1. Identify each cost in the income statement as either relevant or irrelevant to Deep Sea's decision. Variable Manufacturing Costs Variable Selling and Administrative Costs Fixed Manufacturing Costs Fixed Selling and Administrative Costs Requirement 2. Prepare a differential analysis to determine whether Deep Sea should accept this special sales order. (Enter decreases to revenue or increases to costs with a parentheses or minus sign.) Decision: in operating income ▼ Suppose Overboard wishes to buy 4,000 vests from Deep Sea. Deep Sea will not incur any variable selling and administrative expenses on the special order. The Deep Sea plant has enough unused capacity to manufacture the additional vests. Overboard has offered $7…
Classify each cost element as either fixed, variable or mixed Calculate: the variable production cost per unit and the total fixed production overhead Calculate the total variable cost per unit and the total fixed costs

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