Sunland Corporation is in the process of setting a selling price for a recently designed product. The following data relate to this product at a budgeted volume of 60,000 units. Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses (a1) Total unit variable cost $ Total unit fixed cost Total unit cost Per Unit $40 $ 60 $ 10 Sunland uses cost-plus pricing to set its target selling price and has a markup on total unit cost of 30%. 6 Total Compute total unit variable cost, total unit fixed cost, and total unit cost for the new product. $1,860,000 1,560,000
Sunland Corporation is in the process of setting a selling price for a recently designed product. The following data relate to this product at a budgeted volume of 60,000 units. Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses (a1) Total unit variable cost $ Total unit fixed cost Total unit cost Per Unit $40 $ 60 $ 10 Sunland uses cost-plus pricing to set its target selling price and has a markup on total unit cost of 30%. 6 Total Compute total unit variable cost, total unit fixed cost, and total unit cost for the new product. $1,860,000 1,560,000
Cornerstones of Cost Management (Cornerstones Series)
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Chapter12: Activity-based Management
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Problem 1CE: Cicleta Manufacturing has four activities: receiving materials, assembly, expediting products, and...
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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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![Sunland Corporation is in the process of setting a selling price for a recently designed product. The following data relate to this
product at a budgeted volume of 60,000 units.
Direct materials
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
Variable selling and administrative expenses
Fixed selling and administrative expenses
(a1)
Total unit variable cost $
Total unit fixed cost
Total unit cost
Per Unit
$40
$
60
Sunland uses cost-plus pricing to set its target selling price and has a markup on total unit cost of 30%.
69
10
6
Compute total unit variable cost, total unit fixed cost, and total unit cost for the new product.
Total
$1,860,000
1,560,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6c06e076-5f9c-4694-b098-38cbbd7d0ed8%2Fb7c213d6-c5ac-4509-b787-a20a092bd99e%2Ftl27zs_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Sunland Corporation is in the process of setting a selling price for a recently designed product. The following data relate to this
product at a budgeted volume of 60,000 units.
Direct materials
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
Variable selling and administrative expenses
Fixed selling and administrative expenses
(a1)
Total unit variable cost $
Total unit fixed cost
Total unit cost
Per Unit
$40
$
60
Sunland uses cost-plus pricing to set its target selling price and has a markup on total unit cost of 30%.
69
10
6
Compute total unit variable cost, total unit fixed cost, and total unit cost for the new product.
Total
$1,860,000
1,560,000
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