The following is cost and production data for the Wave Darter:*Variable manufacturing costApplied fixed manufacturing costAbsorption manufacturing costVariable selling and administrative costAllocated fixed selling and administrative costTotal costVariable manufacturing costVariable selling and administrative costTotal variable costExercise 15-34 Part 2Per unit$390Markup percentage210*Based on planned monthly production of 44 units (or 528 units per year).t RoundedThe target profit is $49,000, with planned sales equal to production.%60058110t$768$39058$4482. Use the general formula for determining a markup percentage to compute the required markup percentage usingabsorption manufacturing cost. (Round your percentage answer to 2 decimal places (i.e., .1234 should be entered as12.34).)

Answer : Markup percentage = (Unit sales price - Unit variable cost) / Unit variable cost Units…

Answered: xed manufacturing cost n manufacturing…

xed manufacturing cost n manufacturing cost selling and administrative cost fixed selling and administrative cost t manufacturing cost selling and administrative cost iable cost -

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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Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

The following is cost and production data for the Wave Darter:
*
Variable manufacturing cost
Applied fixed manufacturing cost
Absorption manufacturing cost
Variable selling and administrative cost
Allocated fixed selling and administrative cost
Total cost
Variable manufacturing cost
Variable selling and administrative cost
Total variable cost
Exercise 15-34 Part 2
Per unit
$390
Markup percentage
210*
Based on planned monthly production of 44 units (or 528 units per year).
t Rounded
The target profit is $49,000, with planned sales equal to production.
%
600
58
110t
$768
$390
58
$448
2. Use the general formula for determining a markup percentage to compute the required markup percentage using
absorption manufacturing cost. (Round your percentage answer to 2 decimal places (i.e., .1234 should be entered as
12.34).)

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