What is the fixed selling and administrative cost allocated

Assignment Help Managerial Accounting
Reference no: EM133128044

Question - The following data pertain to LawnMate Corporation's top-of-the-line lawn mower.

Variable manufacturing cost $275

Applied fixed manufacturing cost 55

Variable selling and administrative cost 66

Allocated fixed selling and administrative cost ?

To achieve a target price of $495 per lawn mower, the markup percentage is 12.5 percent on total unit cost.

Required -

1. What is the fixed selling and administrative cost allocated to each unit of LawnMate's top-of-the- line mower?

2. For each of the following cost bases, develop a cost-plus pricing formula that will result in a target price of $495 per mower: (a) variable manufacturing cost, (b) absorption manufacturing cost, and (c) total variable cost.

Reference no: EM133128044

Questions Cloud

Evaluate influence of activism by institutional investors : Critically evaluate the influence of activism by institutional investors on corporate governance.700 words
What is the short-run supply curve for firm : Suppose that each identical firm in a competitive market has the following total cost function: TC = 722 + 2 200 that is the same in the short and the long run.
Prepare all pertinent journal entries : BC Co. has 50,000 ordinary shares that are issued and outstanding at a par value of Php10. Prepare all pertinent journal entries
What is the price level : If velocity is 5, aggregate output is initially $ 10 trillion, and the money supply is $2trillion. What is the price level? What is the price level if the money
What is the fixed selling and administrative cost allocated : To achieve a target price of $495 per lawn mower, the markup percentage is 12.5 percent on total unit cost. What is the fixed selling and administrative cost
Businesses across world seek applicants who have soft skills : discusses a myriad of ways that people communicate without using words. Businesses across the world seek applicants who have "soft skills."
Significance of intelligence for business leaders : Discuss the significance of leadership in current uncertain business environment - Significance of Intelligence for business leaders
How does the merger affect markups and profits : Two dermatologist practices want to merge. The price elasticity of demand for dermatology services is -0.35. Firm 1 has a volume of 7,500, fixed costs of $70,00
International dependence revolution models : What are the main arguments of international dependence revolution models? What are the main differences between the linear stages and international dependency

Reviews

Write a Review

Managerial Accounting Questions & Answers

  What is the total profit for order based on the current cost

What is the total profit for this order based on the current cost structure? Show your calculations. what would the target cost be for this product?

  What would be the incremental cost

Assume that the company wishes to increase the number of units produced and sold to 102 units, what would be the incremental cost

  What is the amount of budgeted production for october

What is the amount of budgeted PRODUCTION for October? On September 30 of Year 1, Julian Company had finished goods inventory of 1,000 units.

  Prepare a cash budget for february and march

Budgeting is an important management tool if implemented properly. Identity positive results when budgets are properly used.

  What is the concept of current rate method of translation

What is the concept of current rate method of translation and temporal method of translation? How does balance sheet exposure differ under these two methods?

  Cost/managerial accounting exam

There should be 3-5 story problem type managerial/cost accounting problems (along with some multiple choice). The subject matter it's over is budgeting, product mix, LOTS on variance, allocating cost pools, ROI and other calculations. So please know ..

  Why is the profit-maximizing price extremely difficult

Explain how the profit-maximizing price is calculated. Why is the profit-maximizing price extremely difficult to calculate for an actual product?

  How much will have accumulated by end of sixty-fifth year

If Hal makes annual end-of-year $2,000 deposits into the IRA, how much will he have accumulated by the end of his sixty-fifth year?

  The bottled water company comprehensive master budgetin the

the bottled water company comprehensive master budgetin the following pages you are given basic information for the

  What is the company gross margin for the period

What is the company's gross margin for the period? Acme Inc. is a merchandise reseller that provided the information,Variable administrative expense per unit

  Calculate after-tax operating income for El Suezo

El Suezo faces a tax rate of 40%. Also, El Suezo employed $2,000,000 of debt capital. Calculate after-tax operating income for El Suezo

  Compute the cost of goods sold for the year

Compute the cost of goods sold for the year. (Do not include any under - or over allocated overhead in your cost of goods sold figure.)

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!

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