Smart Stream Inc. uses the total cost concept of applying the cost-plus approach to product pricing. The costs of producing and selling 8,000 units of cellular phones are as follows: Variable costs: Fixed costs: Direct materials $ 87 per unit Factory overhead $349,300 Direct labor 40 Selling and admin. exp. 122,700 Factory overhead 26 Selling and admin. exp. 21

Smart Stream Inc. uses the total cost concept of applying the cost-plus approach to product pricing. The costs of producing and selling 8,000 units of cellular phones are as follows: Variable costs: Fixed costs: Direct materials $ 87 per unit Factory overhead $349,300 Direct labor 40 Selling and admin. exp. 122,700 Factory overhead 26 Selling and admin. exp. 21

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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