Mallard Corporation uses the product cost method of product pricing. Below is cost information for the production and sale of 45,000 units of its soleproduct. Mallard desires a profit equal to a 12% return on invested assets of $800,000.Fixed factory overhead costFixed selling and administrative costsVariable direct materials cost per unitVariable direct labor cost per unitVariable factory overhead cost per unitVariable selling and administrative cost per unit0.90The cost per unit for the production of the company's product isOa. $13.15Ob. $15.40Oc. $15.75Od. $17.22$82,00045,0005.507.652.25

Name: Mallard Corporation uses the product cost method of product pricing.
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Description: Mallard Corporation uses the product cost method of product pricing. Below is cost information for the production and sale of 45,000 units of its soleproduct. Mallard desires a profit equal to a 12% return on invested assets of $800,000.Fixed factor

The product costs comprises of all the direct and indirect costs incurred during the production process. The direct costs are the costs that are directly related to the production and indirect costs include all the manufacturing overhead cost. Product cost per unit Direct materials $5.50 Direct Labor 7.65 Variable manufacturing overhead cost 2.25 Fixed manufacturing overhead ($82,000 / 45,000) 1.82 Total product cost per unit $17.22 Hence, option d. $17.22 is the correct value for product cost per unit.

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Mallard Corporation uses the product cost method of product pricing. Below is cost information for the production and sale of 45,000 units of its sol product. Mallard desires a profit equal to a 12% return on invested assets of $800,000. Fixed factory overhead cost $82,000 Fixed selling and administrative costs 45,000 Variable direct materials cost per unit 5.50 Variable direct labor cost per unit 7.65 Variable factory overhead cost per unit 2.25 Variable selling and administrative cost per unit 0.90 The cost per unit for the production of the company's product is a. $13.15 Ob. $15.40 Oc. $15.75 Od. $17.22

Mallard Corporation uses the product cost method of product pricing. Below is cost information for the production and sale of 45,000 units of its sol product. Mallard desires a profit equal to a 12% return on invested assets of $800,000. Fixed factory overhead cost $82,000 Fixed selling and administrative costs 45,000 Variable direct materials cost per unit 5.50 Variable direct labor cost per unit 7.65 Variable factory overhead cost per unit 2.25 Variable selling and administrative cost per unit 0.90 The cost per unit for the production of the company's product is a. $13.15 Ob. $15.40 Oc. $15.75 Od. $17.22

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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