Horngren's Accounting, Student Value Edition Plus MyAccountingLab with Pearson eText, Access Card Package
Horngren's Accounting, Student Value Edition Plus MyAccountingLab with Pearson eText, Access Card Package
11th Edition
ISBN: 9780134078946
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
Question
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Chapter 25, Problem S25.3SE
To determine

Concept Introduction:

Operating Cost: Operating cost means cost incurred by undertaking which doesnot involve in manufactruring but involved in providing the services. For example Transport industry, Hospitals, Hotel, Ski Resort etc.

Target Pricing: In Target pricing the pricing of services/product is fixed first. The pricing is fixed on the basis of market research. After fixing the prices the desired profit margin is deducted from prices to get the cost under which industry should opearte to remain a profitable venture.

Cost Plus Pricing: In Cost Plus Pricing , the Pricing is decided on the basis of Cost based method. In this first of all variable and fixed cost is added to get total cost . In total Cost the desired profit margin is added to get the pricing of a product.

Requirement 1

1. Profit earned by Mountain Run and return on assets

To determine

Requirement2

1. New Target Variable Cost

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Students have asked these similar questions
Quartz Manufacturing completes job #715, which has a standard of 480 labor hours at a standard rate of $19.50 per hour. The job was completed in 510 hours and the actual average labor rate was $20.10 per hour. What is the labor rate variance? (A negative number indicates a favorable variance and a positive number indicates an unfavorable variance.)
I need help solving this general accounting question with the proper methodology.
hello teacher provide answer with calculation

Chapter 25 Solutions

Horngren's Accounting, Student Value Edition Plus MyAccountingLab with Pearson eText, Access Card Package

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