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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

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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
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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