Ritner Corporation manufactures a product that has the following costs: Per Year Per Unit $ 22.30 $ 13.80 $ 2.20 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses $449,600 $ 1.60 $591,700 The company uses the absorption costing approach to cost-plus pricing as described in the text. The pricing calculations are based on The company has invested $360,100 in this product and expects a return on investment of 9% Required: a Compute the markup on absorption cost (Round your intermediate and final answer to 2 decimal places.) b. Compute the selling price of the product using the absorption costing approach. (Round your intermediate and final answer to 2 decimal places.) a Markup percentage on absorption cost b Seling price
Ritner Corporation manufactures a product that has the following costs: Per Year Per Unit $ 22.30 $ 13.80 $ 2.20 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses $449,600 $ 1.60 $591,700 The company uses the absorption costing approach to cost-plus pricing as described in the text. The pricing calculations are based on The company has invested $360,100 in this product and expects a return on investment of 9% Required: a Compute the markup on absorption cost (Round your intermediate and final answer to 2 decimal places.) b. Compute the selling price of the product using the absorption costing approach. (Round your intermediate and final answer to 2 decimal places.) a Markup percentage on absorption cost b Seling price
Chapter5: Process Costing
Section: Chapter Questions
Problem 1PB: The following product costs are available for Stellis Company on the production of erasers: direct...
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![Ritner Corporation manufactures a product that has the following costs:
Per Unit
$ 22. 30
Per Year
Direct materials
Direct labor
$ 13. 80
Variable manufacturing overhead
Fixed manufacturing overhead
Variable selling and administrative expenses
Fixed selling and administrative expenses
$ 2. 20
$449,600
$ 1.60
$591,700
The company uses the absorption costing approach to cost-plus pricing as described in the text. The pricing calcuiations are based on
budgeted production and sales of 29,100 units per year.
The company has invested $360,100 in this product and expects a return on investment of 9%.
Required:
b. Compute the selling price of the product using the absorption costing approach. (Round your intermediate and final answer to 2
decimal places.)
a Markup percentage on absorption cost
b Selling price](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0463bc4d-1786-4dfd-9771-064b96983629%2Fe4e02edd-7ef1-4275-9a1a-8a32d87888c4%2F9y29aa_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Ritner Corporation manufactures a product that has the following costs:
Per Unit
$ 22. 30
Per Year
Direct materials
Direct labor
$ 13. 80
Variable manufacturing overhead
Fixed manufacturing overhead
Variable selling and administrative expenses
Fixed selling and administrative expenses
$ 2. 20
$449,600
$ 1.60
$591,700
The company uses the absorption costing approach to cost-plus pricing as described in the text. The pricing calcuiations are based on
budgeted production and sales of 29,100 units per year.
The company has invested $360,100 in this product and expects a return on investment of 9%.
Required:
b. Compute the selling price of the product using the absorption costing approach. (Round your intermediate and final answer to 2
decimal places.)
a Markup percentage on absorption cost
b Selling price
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