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18 December, 17:15

Mussatto Corporation produces snowboards. The following per unit cost information is available: direct materials $16; direct labor $5; variable manufacturing overhead $9; fixed manufacturing overhead $12; variable selling and administrative expenses $6; and fixed selling and administrative expenses $13. Using a 43% markup percentage on total per unit cost, compute the target selling price. (Round answer to 2 decimal places, e. g. 10.50.)

Target selling price$

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  1. 18 December, 17:35
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    Selling price = $51.48

    Explanation:

    Giving the following information:

    Direct materials $16

    Direct labor $5

    Variable manufacturing overhead $9

    Variable selling and administrative expenses $6

    To compute the total cost per unit, we will use the variable costing approach. We will only compute the variable costs.

    Total cost per unit = $36

    Selling price = $51.48
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