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Voice Com, Inc., uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 5,020 units of cell phones are as follows: Variable costs: Direct materials Direct labor Factory overhead Selling and admin. exp. Total variable cost per unit $164 per unit Voice Com desires a profit equal to a 13% rate of return on invested assets of $598,500. a. Determine the amount of desired profit from the production and sale of 5,020 units of cell phones. $80 per unit 40 23 21 Fixed costs: Factory overhead Selling and admin. exp. $ b. Determine the product cost per unit for the production of 5,020 of cell phones. If required, round your answer to nearest dollar. $ per unit 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 Markup Selling price per unit per unit per unit $201,500 71,800

Voice Com, Inc., uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 5,020 units of cell phones are as follows: Variable costs: Direct materials Direct labor Factory overhead Selling and admin. exp. Total variable cost per unit $164 per unit Voice Com desires a profit equal to a 13% rate of return on invested assets of $598,500. a. Determine the amount of desired profit from the production and sale of 5,020 units of cell phones. $80 per unit 40 23 21 Fixed costs: Factory overhead Selling and admin. exp. $ b. Determine the product cost per unit for the production of 5,020 of cell phones. If required, round your answer to nearest dollar. $ per unit 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 Markup Selling price per unit per unit per unit $201,500 71,800

FINANCIAL ACCOUNTING
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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Voice Com, Inc., uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 5,020 units of cell phones are as follows: Variable costs: Direct materials $80 per unit Direct labor 40 Factory overhead 23 Selling and admin. exp. 21 Total variable cost per unit $164 per unit Voice Com desires a profit equal to a 13% rate of return on invested assets of $598,500. a. Determine the amount of desired profit from the production and sale of 5,020 units of cell phones. Fixed costs: Factory overhead Selling and admin. exp. b. Determine the product cost per unit for the production of 5,020 of cell phones. If required, round your answer to nearest dollar. per unit Markup Selling price 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 per unit per unit $201,500 71,800
Transcribed Image Text:Voice Com, Inc., uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 5,020 units of cell phones are as follows: Variable costs: Direct materials $80 per unit Direct labor 40 Factory overhead 23 Selling and admin. exp. 21 Total variable cost per unit $164 per unit Voice Com desires a profit equal to a 13% rate of return on invested assets of $598,500. a. Determine the amount of desired profit from the production and sale of 5,020 units of cell phones. Fixed costs: Factory overhead Selling and admin. exp. b. Determine the product cost per unit for the production of 5,020 of cell phones. If required, round your answer to nearest dollar. per unit Markup Selling price 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 per unit per unit $201,500 71,800
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