Product Cost Method of Product Costing MyPhone, Inc., uses the product cost concept of applying...
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Accounting
Product Cost Method of Product Costing
MyPhone, Inc., uses the product cost concept of applying the cost-plus approach to product pricing. The costs of producing and selling 4,810 units of cell phones are as follows:
Variable costs:
Fixed costs:
Direct materials
$82
per unit
Factory overhead
$202,000
Direct labor
40
Selling and admin. exp.
69,300
Factory overhead
22
Selling and admin. exp.
18
Total variable cost per unit
$162
per unit
MyPhone desires a profit equal to a 13% rate of return on invested assets of $601,900.
a. Determine the amount of desired profit from the production and sale of 4,810 units of cell phones. $
b. Determine the product cost per unit for the production of 4,810 of cell phones. If required, round your answer to nearest dollar. $ per unit
c. Determine the product cost markup percentage (rounded to two decimal places) for cell phones. %
d. Determine the selling price of cell phones. Round to the nearest dollar.
Cost
$per unit
Markup
$per unit
Selling price
$per unit
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