Question : 91. Contractors who sell to government agencies would be most likely : 1239622

 

 

91. Contractors who sell to government agencies would be most likely to use which of the following cost concepts in pricing their products? A. Variable costB. Product costC. Total costD. Fixed cost

 

92. The target cost approach assumes that: A. markup is added to total costB. the selling price is set by the marketplaceC. markup is added to variable costD. markup is added to product cost

 

93. Magpie Corporation uses the total cost concept of product pricing. Below is cost information for the production and sale of 60,000 units of its sole product. Magpie desires a profit equal to a 25% rate of return on invested assets of $700,000. 

Fixed factory overhead cost

$38,700

Fixed selling and administrative costs

7,500

Variable direct materials cost per unit

4.60

Variable direct labor cost per unit

1.88

Variable factory overhead cost per unit

1.13

Variable selling and administrative cost per unit

4.50

 

 

The dollar amount of desired profit from the production and sale of the company’s product is: A. $175,000B. $67,200C. $73,500D. $96,000

 

94. Magpie Corporation uses the total cost concept of product pricing. Below is cost information for the production and sale of 60,000 units of its sole product. Magpie desires a profit equal to a 25% rate of return on invested assets of $700,000. 

Fixed factory overhead cost

$38,700

Fixed selling and administrative costs

7,500

Variable direct materials cost per unit

4.60

Variable direct labor cost per unit

1.88

Variable factory overhead cost per unit

1.13

Variable selling and administrative cost per unit

4.50

 

 

The cost per unit for the production and sale of the company’s product is: A. $12.11B. $12.88C. $15D. $13.50

 

95. Magpie Corporation uses the total cost concept of product pricing. Below is cost information for the production and sale of 60,000 units of its sole product. Magpie desires a profit equal to a 25% rate of return on invested assets of $700,000. 

Fixed factory overhead cost

$38,700

Fixed selling and administrative costs

7,500

Variable direct materials cost per unit

4.60

Variable direct labor cost per unit

1.88

Variable factory overhead cost per unit

1.13

Variable selling and administrative cost per unit

4.50

 

 

The markup percentage on total cost for the company’s product is: A. 21.0%B. 22.7%C. 15.8%D. 24.0%

 

96. Magpie Corporation uses the total cost concept of product pricing. Below is cost information for the production and sale of 60,000 units of its sole product. Magpie desires a profit equal to a 25% rate of return on invested assets of $700,000. 

Fixed factory overhead cost

$38,700

Fixed selling and administrative costs

7,500

Variable direct materials cost per unit

4.60

Variable direct labor cost per unit

1.88

Variable factory overhead cost per unit

1.13

Variable selling and administrative cost per unit

4.50

 

 

The unit selling price for the company’s product is: A. $15.00B. $13.82C. $15.80D. $14.76

 

97. Mallard Corporation uses the product cost concept of product pricing. Below is cost information for the production and sale of 45,000 units 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

 

 

The dollar amount of desired profit from the production and sale of the company’s product is: A. $105,840B. $225,000C. $  96,000D. $220,500

 

98. Mallard Corporation uses the product cost concept of product pricing. Below is cost information for the production and sale of 45,000 units 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

 

 

The cost per unit for the production of the company’s product is: A. $13.15B. $17.22C. $15.40D. $15.75

 

99. Mallard Corporation uses the product cost concept of product pricing. Below is cost information for the production and sale of 45,000 units 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

 

 

The markup percentage on product cost for the company’s product is: A. 23.4%B. 10.98%C. 26.1%D. 18%

 

100. Mallard Corporation uses the product cost concept of product pricing. Below is cost information for the production and sale of 45,000 units 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

 

 

The unit selling price for the company’s product is: A. $19.35B. $15.75C. $22.05D. $21.26