Kirgan, Incorporated, manufactures a product with the following costs: Per Unit Per Year $26.00 $ 15.00 $ 3.20 Variable manufacturing overhead Fixed manufacturing overhead $54.20 Direct materials Direct labor Variable selling and administrative expenses $ 3.10 Fixed selling and administrative expenses $ 1,415,500 The company uses the absorption costing approach to cost-plus pricing described in the text. The pricing calculations are based on budgeted production and sales of 92,000 units per year. The company has invested $330,000 in this product and expects a return on investment of 16%. The selling price based on the absorption costing approach would be closest to: (Do not round intermediate calculations.) Question 8 options: $78.96 $82.80 $50.98 $ 1,444,400
Kirgan, Incorporated, manufactures a product with the following costs: Per Unit Per Year $26.00 $ 15.00 $ 3.20 Variable manufacturing overhead Fixed manufacturing overhead $54.20 Direct materials Direct labor Variable selling and administrative expenses $ 3.10 Fixed selling and administrative expenses $ 1,415,500 The company uses the absorption costing approach to cost-plus pricing described in the text. The pricing calculations are based on budgeted production and sales of 92,000 units per year. The company has invested $330,000 in this product and expects a return on investment of 16%. The selling price based on the absorption costing approach would be closest to: (Do not round intermediate calculations.) Question 8 options: $78.96 $82.80 $50.98 $ 1,444,400
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter11: Differential Analysis And Product Pricing
Section: Chapter Questions
Problem 16E
Related questions
Question
Please do not give solution in image format thanku
![Kirgan, Incorporated, manufactures a product with the following costs:
Per Unit Per Year
$26.00
$ 15.00
$ 3.20
Variable manufacturing overhead
Fixed manufacturing overhead
$54.20
Variable selling and administrative expenses $ 3.10
Fixed selling and administrative expenses
$ 1,415,500
The company uses the absorption costing approach to cost-plus pricing described in the text. The pricing calculations are based on
budgeted production and sales of 92,000 units per year.
The company has invested $330,000 in this product and expects a return on investment of 16%.
The selling price based on the absorption costing approach would be closest to: (Do not round intermediate calculations.)
Question 8 options:
$78.96
Direct materials
Direct labor
$82.80
$50.98
$1,444,400](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F24de9d49-6070-4d88-ab58-a37c20172dbc%2Fffd9b29d-7d19-49cd-b4c8-ab80114afbad%2Fq62wxyb_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Kirgan, Incorporated, manufactures a product with the following costs:
Per Unit Per Year
$26.00
$ 15.00
$ 3.20
Variable manufacturing overhead
Fixed manufacturing overhead
$54.20
Variable selling and administrative expenses $ 3.10
Fixed selling and administrative expenses
$ 1,415,500
The company uses the absorption costing approach to cost-plus pricing described in the text. The pricing calculations are based on
budgeted production and sales of 92,000 units per year.
The company has invested $330,000 in this product and expects a return on investment of 16%.
The selling price based on the absorption costing approach would be closest to: (Do not round intermediate calculations.)
Question 8 options:
$78.96
Direct materials
Direct labor
$82.80
$50.98
$1,444,400
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