Problem 22-1A (Part Level Submission) National Corporation needs to set a target

Question

Problem 22-1A (Part Level Submission) National Corporation needs to set a target price for its newly designed product M14-M16. The following data relate to this new product. Per Unit $ 23 $38 12 Total Direct materials Direct labor Varlable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses $1,343,000 7 $ 1,185,000 These costs are based on a budgeted volume of 79,000 units produced and sold each year. National uses cost-plus pricing methods to set its target selling price. The markup percentage on total unit cost is 45 % Compute the total variable cost per unit, total fixed cost per unit, and total cost per unit for M14-M16 Varlable cost per unit 80 Fixed cost per unit Total cost per units

Explanation / Answer

Variable cost per unit 80 =23+38+12+7 Fixed cost per unit 32 =(1343000+1185000)/79000 Total cost per unit 112

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