User Account

All Pages

What is selling price based on absorption costing approach

Assignment Help Accounting Basics
Reference no: EM131785513

Problem

Kircher, Inc., manufactures a product with the following costs:

 

Per Unit

Per Year

Direct materials

$26.20

Direct labor

$15.20

Variable manufacturing overhead

$3.40

Fixed manufacturing overhead

$1,494,600

Variable selling and administrative expenses

$3.30

Fixed selling and administrative expenses

$1,464,700

The company uses the absorption costing approach to cost-plus pricing described in the text. The pricing calculations are based on budgeted production and sales of 94,000 units per year.

The company has invested $350,000 in this product and expects a return on investment of 16%.

What is the selling price based on the absorption costing approach.

$52.80

$80.18

$83.00

$50.91

Reference no: EM131785513

Questions Cloud

Compute the amount of dividends in total payable : Compute the amount of dividends in total payable to each class of stockholders if dividends were declared as described in each case.
Prepare cash flow analysis for operations : Prepare cash flow analysis using indirect method. Prepare cash flow analysis for operations
Ethical leadership in organizations-society : The paper will be in total of 8 pages not counting the reference list and the cover page (7 pages no more than 2000 words and 1 page for the 250 words
Design the composition feedback control : Part of a proposed control design for a blending process is given in Figure. In addition, the composition of A is to be controlled by adjusting one or more.
What is selling price based on absorption costing approach : Kircher, Inc., manufactures a product with the following costs: What is the selling price based on the absorption costing approach.
Budgeted level of sales it margin of safety : If Griffith corporation is able to to achieve the budgeted level of sales it's margin of safety in dollars would be?
What amount should be allocated to the warrants : The market price of the Vernon bonds without the warrants was $180,000, and the market price of the warrants without the bonds was $20,000.
Activity-based costing is only useful for manufacturing : Assess this statement: "Activity-based costing is only useful for manufacturing companies". Do you agree or disagree, why?
Competing on differentiation-competing on low cost : Firms can achieve overall, organization-wide competitive advantage through the following strategies: • Competing on Differentiation • Competing on Low Cost

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd