Alfredo Co.has collected the following per unit data: $$\begin{array} { l r l r }
\text { Direct labor } & \$ 8 & \text { Variable selling and admin. } & \$ 3 \
\text { Direct materials } & 5 & \text { Fixed overhead } & 1 \
\text { Variable overhead } & 4 & \text { Fixed selling and admin. } & 7
\end{array}$$ The markup percentage is 120%.What is the markup amount under the variable-cost approach?
A)$21.60
B)$24.00
C)$20.40
D)$33.60

Question

Alfredo Co.has collected the following per unit data: $$\begin{array} { l r l r } 
\text { Direct labor } & \$ 8 & \text { Variable selling and admin. } & \$ 3 \
\text { Direct materials } & 5 & \text { Fixed overhead } & 1 \
\text { Variable overhead } & 4 & \text { Fixed selling and admin. } & 7
\end{array}$$ The markup percentage is 120%.What is the markup amount under the variable-cost approach?
A)$21.60
B)$24.00
C)$20.40
D)$33.60

Quizplus · Accepted Answer

The Answer of Alfredo Co.has collected the following per unit data: $$\begin{array} { l r l r } 
\text { Direct labor } & \$ 8 & \text { Variable selling and admin. } & \$ 3 \
\text { Direct materials } & 5 & \text { Fixed overhead } & 1 \
\text { Variable overhead } & 4 & \text { Fixed selling and admin. } & 7
\end{array}$$ The markup percentage is 120%.What is the markup amount under the variable-cost approach?
A)$21.60
B)$24.00
C)$20.40
D)$33.60

Alfredo Co The Markup Percentage Is 120