Exercise A Algo How the allocation of fixed cost affects a pricing decision LO
Vernon Manufacturing Company expects to make chairs during the Year accounting period. The company made chairs in January. Materials and labor costs for January were $ and $ respectively. Vernon produced chairs in February. Material and labor costs for February were $ and $ respectively. The company paid the $ annual rental fee on its manufacturing facility on January Year The rental fee is allocated based on the total estimated number of units to be produced during the year.
Required
Assuming that Vernon desires to sell its chairs for cost plus percent of cost what price should be charged for the chairs produced in January and February?
Note: Round intermediate calculations and final answers to decimal places.
tableJanuary,FebruaryPrice per unit,,
