please answer and explain everything in detail answer in text Blue Spruce Windows Inc. is in the process of setting a target price on its newly designed tinted window. Costdata relating to the window at a budgeted volume of 5,040 units are as follows.Direct materialsDirect laborVariable manufacturing overheadFixed manufacturing overheadVariable selling and administrative expensesFixed selling and administrative expenses(a)Per Unit$ 110$ 70$ 10Markup Percentage$ 10TotalBlue Spruce Windows uses cost-plus pricing methods that are designed to provide the company with a 25%ROI on its tinted window line. A total of $1,280,160 in assets is committed to production of the new tintedwindow.$ 151,200%$ 128,520Compute the markup percentage under absorption-cost pricing that will allow Blue Spruce Windows torealize its desired ROI.

MARKUP PERCENTAGE Markup is the difference between a product's selling price and cost as a…

Answered: Compute the markup percentage under…

Compute the markup percentage under absorption-cost pricing that will allow Blue Spruce Windows to realize its desired ROI. Markup Percentage %

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter5: Product And Service Costing: Job-order System

Section: Chapter Questions

Problem 27P: Firenza Company manufactures specialty tools to customer order. Budgeted overhead for the coming...

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Healthfirst (HF) Ltd has recently started to produce a face shield and product's standard cost data are as follows: Cost per unit Direct materials Perspex (0.5 meters @ $15 per meter) $ 7.50 Direct materials Hardened Plastic (0.25 meters at $20.00 per meter) 5.00 Direct manufacturing labour (0.5 hr @ $30.00 per hr) Manufacturing overhead Total Cost 15.00 Required Should HF accept the offer. Show all computations. 30.00 $57.50 Additional information 45% of the Manufacturing overhead changes with the number of units produced. Additionally, if production of face shields is discontinued, 20% of the remaining fixed cost will be avoided. The budgeted production used to compute overheads is 10,000 units per quarter. HF has been approached by another company who is willing to supply the face shields at $50. Per unit. The space used to manufacture face shields can be used to Generate $ 120,000 in contribution margin per quarter.
Majan Plastic Industries produces two categories of products: Plastic Products and Rubber Products. They are deciding whether to use Traditional costing or activity based costing. Based on next year's budget, two cost pools have been developed with the following information: Plastic Products Rubber Products OH Direct Labour 10000 5000 Machine Hours 6500 3500 500000 machine setup 2000 3000 100000 Required: a) Compute the plant-wide overhead rate if overhead is applied based on direct labor hours. b) Compute the overhead rates using activity based costing. c) Determine the difference in the amount of overhead allocated to each product between the two methods.
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Mike. Inc has two products A and B. The budgeted fixed manufacturing overhead is $10,000. The departmentis expected to work in full capacity. It plans to use cost-based pricing by using the absorption method. Assumethe firm can produce and sell 1,000 units Product A and 1,000 units Product B. Product A Product BDirect Materials $3 $2Direct Labor $1 $3Variable Manufacturing Overhead $2 $1Budgeted labor hours used for each unit product 1 4Budgeted machine hours used for each unit product 3 1Sale Demand 1,000 1,000 Product A…
Mike. Inc has two products A and B. The budgeted fixed manufacturing overhead is $10,000. The departmentis expected to work in full capacity. It plans to use cost-based pricing by using the absorption method. Assumethe firm can produce and sell 1,000 units Product A and 1,000 units Product B. Product A Product BDirect Materials $3 $2Direct Labor $1 $3Variable Manufacturing Overhead $2 $1Budgeted labor hours used for each unit product 1 4Budgeted machine hours used for each unit product 3 1Sale Demand 1,000 1,000 Product A…
Mike. Inc has two products A and B. The budgeted fixed manufacturing overhead is $10,000. The departmentis expected to work in full capacity. It plans to use cost-based pricing by using the absorption method. Assumethe firm can produce and sell 1,000 units Product A and 1,000 units Product B. Product A Product BDirect Materials $3 $2Direct Labor $1 $3Variable Manufacturing Overhead $2 $1Budgeted labor hours used for each unit product 1 4Budgeted machine hours used for each unit product 3 1Sale Demand 1,000 1,000 Product A Product BRequired Investment…
Mike. Inc has two products A and B. The budgeted fixed manufacturing overhead is $10,000. The departmentis expected to work in full capacity. It plans to use cost-based pricing by using the absorption method. Assumethe firm can produce and sell 1,000 units Product A and 1,000 units Product B. Product A Product BDirect Materials $3 $2Direct Labor $1 $3Variable Manufacturing Overhead $2 $1Budgeted labor hours used for each unit product 1 4Budgeted machine hours used for each unit product 3 1Sale Demand 1,000 1,000 Product A Product BRequired Investment…
Computing product costs in an activity-based costing system Franklin, Inc. uses activity-based costing to account for its chrome bumper manufacturing process. Company managers hate identified four manufacturing activities: materials handling, machine setup, insertion of parts, and finishing. The budgeted activity costs for 2018 and their allocation bases are as follows Franklin expects to produce 500 chrome bumpers during the year. The bumpers are expected to use 4,000 parts, require 10 setups, and consume 1,000 hours of finishing time. Requirements Compute the predetermined overhead allocation rate for each activity. Compute the expected indirect manufacturing cost of each bumper.
Cullumber Corporation is in the process of setting a selling price for a recently designed product. The following data relate to this product at a budgeted volume of 60,000 units. Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses (a1) ✓ Your answer is correct. Total unit variable cost $ Total unit fixed cost Total unit cost eTextbook and Media Cullumber uses cost-plus pricing to set its target selling price and has a markup on total unit cost of 30%. (a2) Compute total unit variable cost, total unit fixed cost, and total unit cost for the new product. ✓ Your answer is correct. Desired ROI per unit $ eTextbook and Media $ (a3) Per Unit $ $30 Target selling price $ 40 10 6 86 69 Total 155 Compute desired ROI per unit for the new product. (Round answer to 2 decimal places, e.g. 5.27.) $2,220,000 1.920,000 46.50 Compute target selling price for the new product.…
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Computing product costs in an activity-based costing system Turbo Champs Corp. uses activity-based costing to account for its motorcycle manufacturing process. Company managers have identified three supporting manufacturing activities: inspection, machine setup, and machine maintenance. The budgeted activity costs for 2018 and their allocation bases are as follows: Turbo Champs expects to produce 20 custom-built motorcycles for the year. The motorcycles are expected to require 100 inspections, 40 setups, and 100 machine hours. Requirements Compute the predetermined overhead allocation rate for each activity. Compute the expected indirect manufacturing cost of each motorcycle.