Question :
91. What cost concept used in applying the cost-plus approach to : 1246945
91. What cost concept used in applying the cost-plus approach to product pricing includes only total manufacturing costs in the “cost” amount to which the markup is added? A. Variable cost conceptB. Total cost conceptC. Product cost conceptD. Opportunity cost concept
92. Managers who often make special pricing decisions are more likely to use which of the following cost concepts in their work? A. Total costB. Product costC. Variable costD. Fixed cost
93. Defense contractors would be more likely to use which of the following cost concepts in pricing their product? A. Variable costB. Product costC. Total costD. Fixed cost
94. In contrast to the total product and variable cost concepts used in setting seller’s prices, the target cost approach assumes that: A. a markup is added to total costB. selling price is set by the marketplaceC. a markup is added to variable costD. a markup is added to product cost
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
$38,500
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
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
$38,500
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
97. 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
$38,500
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%
98. 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
$38,500
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
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 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
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 cost per unit for the production of the company’s product is: A. $13.15B. $17.22C. $15.40D. $15.75
