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pashok25 [27]
3 years ago
6

Mallard Corporation uses the product cost concept of product pricing. Below is cost information for the production and sale of 4

5,000 of its sole product. Mallard desires a profit equal to a 12% rate of return on invested assets of $800,000. Fixed factory overhead cost $82,000 Fixed selling and administrative costs 45,000 Variable direct materials cost per unit 5.50 Variable direct labor cost per unit 7.65 Variable factory overhead cost per unit 2.25 Variable selling and administrative cost per unit .90
1. what is the cost per unit for the production of the company's product?
2. what is the markup percentage on product cost for the company's product?
3. what is the unit selling price for the company's product?
Business
1 answer:
KiRa [710]3 years ago
5 0

Answer:

1. Cost per unit = 860,500/45000 units = $19.12

2. Mark up = 12% * 800,000 = $96,000/45000 units = $2.13

mark up = 2.13/19.12 = 11.14%

3. Therefore selling price per unit = $19.12+$2.13 = $21.25

Explanation:

Variable direct materials cost per unit............................ 5.50

Variable direct labor cost per unit.................................... 7.65

Variable factory overhead cost per unit .........................2.25

Variable selling and administrative cost per unit........... .90

TOTAL VARIABLE COST PER UNIT..................................16.3

TOTAL VARIABLE COST = $16.3*45000 units = $733,500

Fixed factory overhead cost $82,000

Fixed selling and administrative costs 45,000

TOTAL COST = $ 860,500

1. Cost per unit = 860,500/45000 units = $19.12

2. Mark up = 12% * 800,000 = $96,000/45000 units = $2.13

mark up = 2.13/19.12 = 11.14%

3. Therefore selling price per unit = $19.12+$2.13 = $21.25

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The depreciation method in which a plant asset's depreciation expense for a period is determined by applying a constant deprecia
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Answer:

double declining balance method

Explanation:

Depreciation is an accounting tool to allocate the cost of a long-term asset over time. The reasoning behind is the matching principle. If we associate the entire purchase value at the very first moment, then, one accounting period is taking a hit for an asset that will be use over several accounting periods.

         

The double declining method applies a rate twice as the straight-line method.

This is applied at the carrying value of the assets (book value) every year for each year of useful life.

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On January 1, 2021, the Excel Delivery Company purchased a delivery van for $46,000. At the end of its five-year service life, i
marusya05 [52]

Answer:

Given

Cost $46000

Life= 5 years

Salvage Value= $ 4000

Total miles = 165,000

Formula

Depreciation Straight Line Method= Cost - Salvage Value/ Useful Life

Straight Line Rate= 100%/ useful Life= 100%/5 = 20%

Double Declining Method = 2 * Straight Line Rate

Double Declining Method = 2 * Straight Line Rate= 2*20%= 40%

1. Depreciation Straight Line Method= Cost - Salvage Value/ Useful Life

Depreciation Straight Line Method= $ 46000- $4000/ 5= $ 8,400

The depreciation expense using the straight line method does not change unless the salvage value is reached

Years        Depreciation      Accumulated Dep          Book Value

                                                                                (Cost - Accu. Dep)

a. 2021       $ 8,4000               8400                            37600

b. 2022       $ 8,4000               16,800                         29,200

c. 2023        $ 8,4000              25200                          20,800  

d. 2024       $ 8,4000              33,600                        12,400

e. 2025       $ 8,4000             42000                        4000

2. Straight Line Rate= 100%/ useful Life= 100%/5 = 20%

Double Declining Method = 2 * Straight Line Rate

Double Declining Method = 2 * Straight Line Rate= 2*20%= 40%

In double declining method the rate is multiplied to the cost to get the depreciation expense. 40 % of $ 46000= $ 18400

Each year the rate is multiplied with the remaining book value after deducting the depreciation expense from the cost as $ 46000- $ 18400= $ 27600

Next years depreciation will be $ 27600 * 40%= $ 11040.

This will be added in the original depreciation expense $ 18400 + $ 11040 = $ 29440 and deducted from cost to get the book value. $ 46,000- $ 29440 = $ 16560.

Again rate will be multiplied and each years depreciation will be calculated similarly.

It has been summarized in the table below.

Years       Dep Rate      Dep Expense       Accu. Dep.     Book Value

a. 2021        40%           18400                   18400               27600

b. 2022       40%           11040                     29440               16560

c. 2023       40%             6624                     36064               9936

d. 2024       40%             3974.4                  40,038.4         5961.6

e. 2025       40%            2384.64                   42,0423.4     3576.96

3. Depreciation per unit= (Cost -Salvage value) / Total units of production* Units of Production

Years       Mileage      Depreciation                    Depreciation

a. 2021      35,000     ($ 42000/165000)*35000        8909.09

b. 2022     37,000      ($ 42000/165000)*37000       9418.18

c. 2023      28,000     ($ 42000/165000)*28000        7127.27

d. 2024      33,000      ($ 42000/165000)*33000        8400

e. 2025      34,000    ($ 42000/165000)*34000         8654.54

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Answer:

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Which of the following is NOT Considered personal information?
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Explanation:

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