Gibson Manufacturing Company expects to make 30,600 chairs during the Year 1 accounting period. The company made 4,900 chairs in January. Materials and labor costs for January were $16,900 and $24,800, respectively. Gibson produced 1,700 chairs in February. Material and labor costs for February were $8,400 and $13,800, respectively. The company paid the $826,200 annual rental fee on its manufacturing facility on January 1, Year 1. The rental fee is allocated based on the total estimated number of units to be produced during the year. Required Assuming that Gibson desires to sell its chairs for cost plus 30 percent of cost, what price should be charged for the chairs produced in January and February? Note: Round intermediate calculations and final answers to 2 decimal places. January Price per unit February

Gibson Manufacturing Company expects to make 30,600 chairs during the Year 1 accounting period. The company made 4,900 chairs in January. Materials and labor costs for January were $16,900 and $24,800, respectively. Gibson produced 1,700 chairs in February. Material and labor costs for February were $8,400 and $13,800, respectively. The company paid the $826,200 annual rental fee on its manufacturing facility on January 1, Year 1. The rental fee is allocated based on the total estimated number of units to be produced during the year. Required Assuming that Gibson desires to sell its chairs for cost plus 30 percent of cost, what price should be charged for the chairs produced in January and February? Note: Round intermediate calculations and final answers to 2 decimal places. January Price per unit February

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter7: The Master Budget And Flexible Budgeting

Section: Chapter Questions

Problem 23Q: If a factory operates at 100% of capacity one month, 90% of capacity the next month, and 105% of...

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