99) Drost, Inc. has budgeted sales of $150,000 with the following budgeted costs:

Direct materials$31,500

Direct labour20,500

Factory overhead:

Variable18,500

Fixed28,000

Selling and administrative expenses:

Variable12,000

Fixed16,000

Compute the average target profit percentage for setting prices as a percentage of:

a.Prime costs.

b.Total costs.

c.Total variable costs.

d.Variable manufacturing costs.

e.Total manufacturing costs.

100) Ellson Corp. has budgeted sales of $487,500 with the following budgeted costs:

Direct materials$105,000

Direct labour82,500

Factory overhead:

Variable$  60,000

Fixed67,500

Selling and administrative expenses:

Variable$  45,000

Fixed62,500

Compute the average target profit percentage for setting prices as a percentage of:

a.Total manufacturing costs.

b.Total variable costs.

c.Prime costs.

d.Total costs.

e.Variable manufacturing costs.



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