Need help Voice Com, Inc., uses the product cost concept of applying the cost-plusapproach to product pricing. The costs of producing and selling 5,070 unitsof cell phones are as follows:Variable costs:Fixed costs:Direct materials$89 per unit Factory overhead$198,300Direct labor33Selling and admin.exp.71,800Factory overheadSelling and admin.2722exp.Total variable cost per$171 per unitunitVoice Com desires a profit equal to a 14% rate of return on invested assetsof $598,500.a. Determine the amount of desired profit from the production and sale of5,070 units of cell phones.b. Determine the product cost per unit for the production of 5,070 of cellphones. If required, round your answer to nearest dollar.c. Determine the product cost markup percentage (rounded to two decimalplaces) for cell phones.d. Determine the selling price of cell phones. Round to the nearest dollar.

Step 1: a) Desired profit = Invested assets * Rate of return = $598,500 x 14%= $83,790 Step 2: b)…

Answered: Voice Com, Inc., uses the product cost…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter11: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 17E: Product cost method of product costing Smart Stream Inc. uses the product cost method of applying...

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Similar questions

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MyPhone, Inc., uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 4,870 units of cell phones are as follows: Variable costs: Fixed costs: Direct materials $64 per unit Factory overhead $198,100 Direct labor 32 Selling and admin. exp. 71,000 Factory overhead 22 Selling and admin. exp. 19 Total variable cost per unit $137 per unit MyPhone desires a profit equal to a 13% rate of return on invested assets of $601,800. a. Determine the amount of desired profit from the production and sale of 4,870 units of cell phones. b. Determine the product cost per unit for the production of 4,870 of cell phones. If required, round your answer to nearest dollar. c. Determine the product cost markup percentage (rounded to two decimal places) for cell phones. d. Determine the selling price of cell phones. Round to the nearest dollar. Total Cost $per unit Markup…
Phone, Inc., uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 5,490 units of cell phones are as follows: Variable costs: Fixed costs: Direct materials $90 per unit Factory overhead $201,800 Direct labor 39 Selling and admin. exp. 69,700 Factory overhead 22 Selling and admin. exp. 19 Total variable cost per unit $170 per unit Phone desires a profit equal to a 14% rate of return on invested assets of $598,700. Determine the amount of desired profit from the production and sale of 5,490 units of cell phones. $____ Determine the product cost per unit for the production of 5,490 of cell phones. If required, round your answer to nearest dollar. $______ per unit Determine the product cost markup percentage (rounded to two decimal places) for cell phones. _______…
Diff Analysis & Product Pricing:
Company P, uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 5,490 units of cell phones are as follows: Variable costs: Fixed costs: Direct materials $90 per unit Factory overhead $201,800 Direct labor 39 Selling and admin. exp. 69,700 Factory overhead 22 Selling and admin. exp. 19 Total variable cost per unit $170 per unit Company p desires a profit equal to a 14% rate of return on invested assets of $598,700. Determine the amount of desired profit from the production and sale of 5,490 units of cell phones. $____ Determine the product cost per unit for the production of 5,490 of cell phones. If required, round your answer to nearest dollar. $______ per unit Determine the product cost markup percentage (rounded to two decimal places) for cell phones.…
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
Voice Com, Inc. uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 5,480 cell phones are as follows: Variable costs per unit: Direct materials Direct labor Factory overhead Selling and administrative expenses Total variable cost per unit 161 34 24 19 $138 Fixed costs: Factory overhead Selling and administrative expenses Voice Com desires a profit equal to a 14% return on invested assets of $600,700. a. Determine the amount of desired profit from the production and sale of 5,400 cell phones. 84,098 ✔ $201,600 71,600 b. Determine the product cost per unit for the production of 5,480 cell phones. Round your answer to the nearest whole dollar. 156 ✔ per unit c. Determine the product cost markup percentage for cell phones. Round your answer to two decimal places. X%
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MyPhone, Inc. uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 5,080 cell phones are as follows: Variable costs per unit: Fixed costs: Direct materials $71 Factory overhead $201,900 Direct labor 37 Selling and administrative expenses 71,300 Factory overhead 26 Selling and administrative expenses 20 Total variable cost per unit $154 MyPhone desires a profit equal to a 16% rate of return on invested assets of $598,400. a. Determine the amount of desired profit from the production and sale of 5,080 cell phones.$ b. Determine the product cost per unit for the production of 5,080 of cell phones. Round your answer to the nearest whole dollar.$ per unit c. Determine the product cost markup percentage for cell phones. Round your answer to two decimal places. % d. Determine the selling price of cell phones. Round your answers to the nearest whole…
By showing relevant workings, compute the total product cost usingtraditional and ABC systems for Hups model.

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