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) Total unit variable cost Total unit fixed cost Total unit cost $ Per Unit $ $30 Cullumber uses cost-plus pricing to set its target selling price and has a markup on total unit cost of 30%. $ 40 10 Compute total unit variable cost, total unit fixed cost, and total unit cost for the new product. 6 Total $2,220,000 1,920,000

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) Total unit variable cost Total unit fixed cost Total unit cost $ Per Unit $ $30 Cullumber uses cost-plus pricing to set its target selling price and has a markup on total unit cost of 30%. $ 40 10 Compute total unit variable cost, total unit fixed cost, and total unit cost for the new product. 6 Total $2,220,000 1,920,000

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Description: Cullumber Corporation is in the process of setting a selling price for a recently designed product. The following data relate to thisproduct at a budgeted volume of 60,000 units.Direct materialsDirect laborVariable manufacturing overheadFixed manufa

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Concept explainers

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.

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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)
Total unit variable cost $
Total unit fixed cost
Total unit cost
Per Unit
$
$30
$
40
Cullumber uses cost-plus pricing to set its target selling price and has a markup on total unit cost of 30%.
10
6
Compute total unit variable cost, total unit fixed cost, and total unit cost for the new product.
Total
$2,220,000
1,920,000

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