Respuesta :
Answer:
1. Unit cost = $1, 040 / 52
= $20
2. =$20 x (100% + 120%)
=$44
Explanation:
Before we start answering the question, we need to have a clear understanding of what mark-up percentage is, and how it impacts on the manufacturing cost.
Mark-up: is the amount added to the cost price to cover the overheads and realize a profit.
A mark-up percentage is a percentage (%) that is used as a basis to determine the mark-up value.
For example, a seller may mark-up her costs by 25% to arrive at a selling price.
Seller cost price is $100 and has a mark-up policy of 25%; the selling price is then derived as follows:
=$100 x (100% + 25%)
=$100 x 125%
=$125
The full information relating to Moody is as follows:
During the years, Job 400 was started and completed. The following information was made available concerning Job 400:
Direct materials $450
Direct labor $210
Estimated manufacturing overhead costs $950, 000
Estimated total machine hours 100, 000
Machine hours used 40
Compute the total manufacturing costs assigned to Job 400
If Job 400 includes 52 units, what is the unit cost for this job?
Answer:
Costs incurred: Direct materials $450
Direct labor $210
Overheads [$950, 000 / 100, 000] x 40 $380
Total Costs $1, 040
Unit cost = $1, 040 / 52
= $20
If Moody uses a mark-up of 120% of its total manufacturing costs, then what selling price per unit would it have to establish for Job 400?
Answer:
=$20 x (100% + 120%)
=$44
