Schopp Corporation makes a mechanical stuffed alligator that sings the Martian national anthem. The following information is available for Schopp Corporation's anticipated annual volume of 501,000 units. Per Unit $8 $13 $16 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses $13 Fixed selling and administrative expenses Total $3,507,000 Absorption-cost pricing markup percentage $1,503,000 The company has a desired ROI of 25%. It has invested assets of $30,060,000, Using absorption-cost pricing, compute the markup percentage. (Round answer to 2 decimal places, e.g. 10.50%.) %

Schopp Corporation makes a mechanical stuffed alligator that sings the Martian national anthem. The following information is available for Schopp Corporation's anticipated annual volume of 501,000 units. Per Unit $8 $13 $16 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses $13 Fixed selling and administrative expenses Total $3,507,000 Absorption-cost pricing markup percentage $1,503,000 The company has a desired ROI of 25%. It has invested assets of $30,060,000, Using absorption-cost pricing, compute the markup percentage. (Round answer to 2 decimal places, e.g. 10.50%.) %

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Description: Schopp Corporation makes a mechanical stuffed alligator that sings the Martian national anthem. The following information isavailable for Schopp Corporation's anticipated annual volume of 501,000 units.Per Unit$8$13$16Direct materialsDirect laborVar

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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Concept explainers

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.

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Question

Schopp Corporation makes a mechanical stuffed alligator that sings the Martian national anthem. The following information is
available for Schopp Corporation's anticipated annual volume of 501,000 units.
Per Unit
$8
$13
$16
Direct materials
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
Variable selling and administrative expenses $13
Fixed selling and administrative expenses
Total
$3,507,000
Absorption-cost pricing markup percentage
$1,503,000
The company has a desired ROI of 25%, It has invested assets of $30,060,000,
Using absorption-cost pricing, compute the markup percentage. (Round answer to 2 decimal places, e.g. 10.50%.)
%

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Step 1: Introduce to absorption costing method

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Step 2: Working for fixed manufacturing overhead per unit and fixed selling and administrative per unit

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Step 3: Working for target price per unit

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