Question

Exercise 8-4 (Video) Kaspar Corporation makes a commercial-grade cooking griddle. The following information is available for Kaspar Corporation's anticipated annual volume of 33,900 units. Total Per Unit $19 $12 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses $339,000 $6 $101,700 The company uses a 20% markup percentage on total cost. x Your answer is incorrect. Try again. Compute the total cost per unit. Total cost per unit 42 x Your answer is incorrect. Try again. Compute the target selling price. Target selling price

Answer 1

Direct materials per unit	19
Direct labor per unit	5
Variable manufacturing overhead per unit	12
Fixed manufacturing overhead per unit ( 339000 / 33900 )	10
Variable selling and administrative expense per unit	6
Fixed selling and administrative expense per unit ( 101700 / 33900 )	3
Total cost per unit	55
Total cost per unit	55
(+) Markup @ 20% of total cost	11
Target selling price	66