Techcom is designing a new smartphone. Each unit of this new phone will require $233 of direct materials; $13 of direct labor; $26 of variable overhead; $21 of variable selling, general, and administrative costs; $34 of fixed overhead costs; and $13 of fixed selling, general, and administrative costs. 1. Compute the selling price per unit if the company uses the total cost method and plans a markup of 170% of total costs. 2. The company is a price-taker and the expected selling price for this type of phone is $830 per unit. Compute the target cost per unit if the company's target profit is 70% of expected selling price. 3. Compute the selling price per unit if the company uses the variable cost method and plans a markup of 200% of variable costs. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the selling price per unit if the company uses the total cost method and plans a markup of 170% of total costs. 1. Total cost per unit 2. Markup per unit 3. Selling price per unit
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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