In addition to the MOH costs, the following DM and DL costs are provided for the three product types. Small Direct materials cost/unit $3.00 Direct labor cost/unit $1.50 Medium Gross margin percentage $3.40 $1.90 If Kingbird sells the small mouse for $16, the medium mouse for $17, and the large mouse for $26, what gross margin percentage is it generating for each product? (Round answers to 2 decimal places, e.g. 15.25%.) Large $3.60 $1.80 Small % Medium de % Large %
In addition to the MOH costs, the following DM and DL costs are provided for the three product types. Small Direct materials cost/unit $3.00 Direct labor cost/unit $1.50 Medium Gross margin percentage $3.40 $1.90 If Kingbird sells the small mouse for $16, the medium mouse for $17, and the large mouse for $26, what gross margin percentage is it generating for each product? (Round answers to 2 decimal places, e.g. 15.25%.) Large $3.60 $1.80 Small % Medium de % Large %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:In addition to the MOH costs, the following DM and DL costs are provided for the three product types.
Direct materials cost/unit
Direct labor cost/unit
Small
Gross margin percentage
$3.00
$1.50
Medium
$3.40
$1.90
If Kingbird sells the small mouse for $16, the medium mouse for $17, and the large mouse for $26, what gross margin percentage
is it generating for each product? (Round answers to 2 decimal places, e.g. 15.25%.)
Large
$3.60
$1.80
Small
%
Medium
%
Large
de
%
Transcribed Image Text:The managers of Kingbird were determined to reduce product costs for the three versions of wireless mouses they carried-small,
medium, and large-to be more competitive. All three product types went through production and packaging and generated the need
for factory maintenance. The activity rates for these three key activities are as follows.
Production
Packaging
Maintenance
MOH rates
$13 per DL hour
$4 per packaging hour
$2 per machine hour
The following resources were consumed for the production of each type of mouse.
Direct labour hours used
Packaging hours used
Machine hours used
Units produced
(b)
Small Medium Large
4,400
3,800
Total applied MOH
2,500
4,600
32,000
Your answer is correct.
6,500
3,400
5,200
4,600
39,000 29,000
Allocate MOH costs to the three products using the activity rates given.
4,800
Small Mouse
68600
tA
Medium Mouse
108500
Large Mouse
85600
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