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Al Mudafa Corporation builds houses in the new city zone of Sharjah with a maximum...

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Accounting

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Al Mudafa Corporation builds houses in the new city zone of Sharjah with a maximum of 30 villas per year. The budget costs for an expected number of villas in 2021 is as follows: Direct Materials 6,500,000 Direct Labor 2,500,000 Job Cost (overhead) 2,000,000 Cost of Jobs 11,000,000 Fixed cost components in the job cost overhead constitute 53%. The selling and administrative costs anticipated to be 2,500,000 and its variable portion is expected to be 33%. Al Mudafa Corporation is targeting an operating income of $2,500,000 in the year 2021. Required: 1. Compute the average target markup percentage for setting prices as a percentage of JL 10.TL JM15 administrative costs anticipated to be 2,500,000 and its variable portion is expected to be 33%. Al Mudafa Corporation is targeting an operating income of $2,500,000 in the year 2021. Required: 1. Compute the average target markup percentage for setting prices as a percentage of the following: (A) Prime cost (B) The full cost of the job (C) The variable cost of the job (D) The direct material 1 %

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