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 Cullumber uses cost-plus pricing to set its target selling price and has a markup on total unit cost of 30%. eTextbook and Media (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 $ 40 Target selling price $ 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. (Round answer to 2 decimal places, e.g. 5.27.) Attempts: 1 of 5 used Attempts: 1 of 5 used

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 Cullumber uses cost-plus pricing to set its target selling price and has a markup on total unit cost of 30%. eTextbook and Media (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 $ 40 Target selling price $ 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. (Round answer to 2 decimal places, e.g. 5.27.) Attempts: 1 of 5 used Attempts: 1 of 5 used

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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Brindle Arts uses Variable Costing for internal purposes, but uses Absorption Costing for their financial reports. The following information is for Quarter 4, 2021 and Quarter 1, 2022. Calculate unit product costs for Quarters 4 and 1 for Variable and Absorption Costing. Prepare an income statement for each method, then show why there is a difference between the two. Selling price per unit $ 150 Quarter 4 Quarter 1 Variable costs per unit Units in beginning inventory - 1,750 Direct materials $ 45.00 Production (in units) 15,000 10,750 Direct labor $ 20.00 Sales (in units) 13,250 12,500 Variable overhead $ 15.00 Ending inventory 1,750 - Variable S&A $ 10.00 Fixed Costs in total per quarter Fixed manufacturing overhead…
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 (a2) Cullumber uses cost-plus pricing to set its target selling price and has a markup on total unit cost of 30%. Per Unit $ Desired ROI per unit $ $30 Compute total unit variable cost, total unit fixed cost, and total unit cost for the new product. $ 40 10 6 86 Total 69 $2,220,000 155 1,920,000 Compute desired ROI per unit for the new product. (Round answer to 2 decimal places, e.g. 5.27.) Attempts: 1 of 5 used
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