[The following information applies to the questions displayed below.] The following is cost...
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Accounting
[The following information applies to the questions displayed below.]
The following is cost and production data for the Wave Darter:
Per unit
Variable manufacturing cost
$
370
Applied fixed manufacturing cost
210
*
Absorption manufacturing cost
580
Variable selling and administrative cost
41
Allocated fixed selling and administrative cost
140
Total cost
$
761
Variable manufacturing cost
$
370
Variable selling and administrative cost
41
Total variable cost
$
411
*Based on planned monthly production of 43 units (or 516 units per year).
Rounded
The target profit is $40,000, with planned sales equal to production.
Required:
Use the general formula for determining a markup percentage to compute the required markup percentage using variable manufacturing cost. (Round your percentage answer to 2 decimal places (i.e., .1234 should be entered as 12.34).)
Use the general formula for determining a markup percentage to compute the required markup percentage using absorption manufacturing cost. (Round your percentage answer to 2 decimal places (i.e., .1234 should be entered as 12.34).)
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