Kirgan, Incorporated, manufactures a product with the following costs:Per UnitPer YearDirect materials$ 26.00Direct labor$ 15.00Variable...
80.2K
Verified Solution
Link Copied!
Question
Accounting
Kirgan, Incorporated, manufactures a product with the following costs:
Per Unit
Per Year
Direct materials
$ 26.00
Direct labor
$ 15.00
Variable manufacturing overhead
$ 3.20
Fixed manufacturing overhead
$ 1,444,400
Variable selling and administrative expenses
$ 3.10
Fixed selling and administrative expenses
$ 1,415,500
The company uses the absorption costing approach to cost-plus pricing described in the text. The pricing calculations are based on budgeted production and sales of 92,000 units per year.
The company has invested $330,000 in this product and expects a return on investment of 16%.
Calculate the selling price based on the absorption costing approach .
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
