Steeze Co. makes snowboards and uses the total cost approach in setting product prices. Its costs for producing 14,000 units follow. The company targets a profit of $512,400 on this product. Variable Costs per Unit Direct materials Direct labor Overhead Selling Fixed Costs $ 108 33 28 9 Overhead Selling Administrative $ 478,000 113,000 333,000 1. Compute the total cost per unit. 2. Compute the markup percentage on total cost. (Round your final percentage answer to 1 decimal place.) 3. Compute the product's selling price using the total cost method.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Steeze Co. makes snowboards and uses the total cost approach in setting product prices. Its costs for producing 14,000
units follow. The company targets a profit of $512,400 on this product.
Variable Costs
per Unit
Direct
materials
Direct labor
Overhead
Selling
Fixed
Costs
E
33 Selling
28 Administrative
$ 108 Overhead
9
$ 478,000
113,000
333,000
1. Compute the total cost per unit.
2. Compute the markup percentage on total cost. (Round your final percentage answer to 1 decimal place.)
3. Compute the product's selling price using the total cost method.
Transcribed Image Text:Steeze Co. makes snowboards and uses the total cost approach in setting product prices. Its costs for producing 14,000 units follow. The company targets a profit of $512,400 on this product. Variable Costs per Unit Direct materials Direct labor Overhead Selling Fixed Costs E 33 Selling 28 Administrative $ 108 Overhead 9 $ 478,000 113,000 333,000 1. Compute the total cost per unit. 2. Compute the markup percentage on total cost. (Round your final percentage answer to 1 decimal place.) 3. Compute the product's selling price using the total cost method.
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