156.Yakking Co. manufactures mobile cellular equipment and develops a price for the product by using the variable costconcept. Yakking incurs variable costs of $1,900,000 in the production of 100,000 units while fixed costs total$50,000. The company employs $4,725,000 of assets and wishes to earn a profit equal to a 10% rate of return onassets.
(a)Compute a markup percentage based on variable cost.
(b)Determine a selling price.
Round your markup percentage to one decimal place, and other intermediate calculations and final answer to twodecimal places.
157.The Canine Company has total estimated factory overhead for the year of $2,400,000, divided into four activities:fabrication, $1,200,000; assembly, $480,000; setup, $400,000; and materials handling, $320,000. Caninemanufactures two products, Standard Crates and Deluxe Crates. The activity-base usage quantities for eachproduct by each activity are as follows:
|
?
Fabrication
|
?
Assembly
|
?
Setup
|
Materials handling
|
Standard
|
20,000 dlh
|
60,000 dlh
|
120 setups
|
200 moves
|
Deluxe
|
60,000
|
20,000
|
880
|
1,400
|
|
80,000 dlh
|
80,000 dlh
|
1,000 setups
|
1,600 moves
|
Each product is budgeted for 20,000 units of production for the year.Determine (a) the activity rates for each activity and (b) the factory overhead cost per unit for each product usingactivity-based costing.
158.Jamison Company produces and sells Product X at a total cost of $25 per unit, of which $15 is product cost and $10is selling and administrative expenses. In addition, the total cost of $25 is made up of $14 variable cost and $11fixed cost. The desired profit is $5 per unit. Determine the markup percentage on total cost.
159.Using the variable cost concept, determine the selling price for 30,000 units using the following data: variable cost punit, $15.00; total fixed costs, $90,000; and desired profit, $150,000.