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qs 25-17 and 25-11 kull Company makes snowboards and uses the total cost method...

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Accounting

qs 25-17 and 25-11

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kull Company makes snowboards and uses the total cost method in setting product price. Its costs for producing 20,000 units follow. The company targets a 14.0% markup on total cost.

Variable Costs per Unit
Direct materials $ 121
Direct labor 46
Overhead 41
Selling, general and administrative 9

Fixed Costs (total)
Overhead $ 491,000
Selling, general and administrative 469,000

1. Compute the total cost per unit if 20,000 units are produced. 2. Compute the dollar markup per unit. 3. Compute the selling price per unit.

Skull Company makes snowboards and uses the total cost method in setting product price. Its costs for producing 20,000 units follow. The company targets a 14.0% markup on total cost. Variable Costs per Unit Direct materials Direct labor Overhead Selling, general and administrative $ 121 46 41 9 Fixed Costs (total) Overhead Selling, general and administrative $ 491,000 469,000 1. Compute the total cost per unit if 20,000 units are produced. 2. Compute the dollar markup per unit. 3. Compute the selling price per unit. (For all requirements, round your final answers to the nearest dollar amounts.) 1. Total cost per unit 2. Markup per unit 3. Selling price per unit

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