![]() The direct materials materials and direct labor costs per unit for each product are: Target selling price (% of total mfg. The firm uses direct labor dollars d ollars to estimate manufacturing overhead costs. The actual units sold for each product also are the same as the budgeted units. Both the budgeted and actual factory overhead for 2010 are $493,000. ![]() He believes that the information suggests that Product C has the greatest potential among the firm's three products since the actual selling price of Product C was almost 50 percent higher than the target price while the firm was forced to sell Product B at a price below the target price. Recognizing that the firm was able to sell Product C at a much higher price than the target price of the product and lost money on Product B, To Watson, CEO, wants to promote Product C much more aggressively and phase out Product Prod uct B. The firm sets the target price of each product at 150% of the product's total manufacturing cost. 5-54 West Chemical Company produces three products.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |