QUESTION 4 (S) 20 Direct material cost: ($) 20 Direct labor cost: 10 Variable production overhead 10 Variable nonproduction overhead 5 They are estimated the fixed production overhead; fixed nonproduction overhead of 5'mil 0.9 and 5'mil 0.1 respectively. There is no opening inventory; budgeted production and sales volume is 120,000 units. The following anticipated data are for the next year of operations: Per unit Requirements: 1. Compute product cost under absorption costing and unit selling price if the markup percentage is 50% of product cost. 2. If the company want to achieve target net income of $'mil 3.6, how many percentages of margin on variable cost should be applied
QUESTION 4 (S) 20 Direct material cost: ($) 20 Direct labor cost: 10 Variable production overhead 10 Variable nonproduction overhead 5 They are estimated the fixed production overhead; fixed nonproduction overhead of 5'mil 0.9 and 5'mil 0.1 respectively. There is no opening inventory; budgeted production and sales volume is 120,000 units. The following anticipated data are for the next year of operations: Per unit Requirements: 1. Compute product cost under absorption costing and unit selling price if the markup percentage is 50% of product cost. 2. If the company want to achieve target net income of $'mil 3.6, how many percentages of margin on variable cost should be applied
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![QUESTION 4
(S) 20
Direct material cost: ($) 20
Direct labor cost: 10
The following anticipated data are for the next year of operations: Per unit
Variable production overhead 10
Variable nonproduction overhead 5
They are estimated the fixed production overhead; fixed nonproduction overhead of 5'mil 0.9 and 5'mil 0.1 respectively.
There is no opening inventory; budgeted production and sales volume is 120,000 units.
Requirements:
1. Compute product cost under absorption costing and unit selling price if the markup percentage is 50% of product cost.
2. If the company want to achieve target net income of $'mil 3.6, how many percentages of margin on variable cost should
be applied](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F18682a16-f2ef-418e-a484-7f4f95889913%2Fc70322cf-4763-4b87-aa76-610859091153%2F0fbvik_processed.png&w=3840&q=75)
Transcribed Image Text:QUESTION 4
(S) 20
Direct material cost: ($) 20
Direct labor cost: 10
The following anticipated data are for the next year of operations: Per unit
Variable production overhead 10
Variable nonproduction overhead 5
They are estimated the fixed production overhead; fixed nonproduction overhead of 5'mil 0.9 and 5'mil 0.1 respectively.
There is no opening inventory; budgeted production and sales volume is 120,000 units.
Requirements:
1. Compute product cost under absorption costing and unit selling price if the markup percentage is 50% of product cost.
2. If the company want to achieve target net income of $'mil 3.6, how many percentages of margin on variable cost should
be applied
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