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