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Question - Product Cost Method of Product Pricing - La Femme Accessories Inc. produces women's handbags. The cost of producing 1,290 handbags is as follows:
Direct materials $17,000
Direct labor 8,200
Factory overhead 5,500
Total manufacturing cost $30,700
The selling and administrative expenses are $27,500. The management desires a profit equal to 17% of invested assets of $504,000. If required, round your answers to nearest whole number.
Required -
a. Determine the amount of desired profit from the production and sale of 1,290 handbags.
b. Determine the product cost per unit for the production of 1,290 handbags.
c. Determine the product cost markup percentage for handbags.
d. Determine the selling price of handbags. Round your answers to nearest whole value.
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