The following data pertain to Waters Corporation's residential humidifier: $$\begin{array} { l r }
\text { Variable manufacturing cost } & \$ 240 \
\text { Applied fixed manufacturing cost } & 80 \
\text { Variable selling and administrative cost } & 60 \
\text { Allocated fixed selling and administrative cost } & ?
\end{array}$$
To achieve a target price of $450 per humidifier, the markup percentage on total unit cost is 12%.
Required:
A. Calculate the fixed selling and administrative cost allocated to each humidifier.
B. For each of the following bases, determine the appropriate percentage markup on cost that will result in a target price of $450 per humidifier: (1) variable manufacturing cost, (2) absorption manufacturing cost, and (3) total variable cost. (Round percentages to the nearest one-hundredth of a percent.)

Question

The following data pertain to Waters Corporation's residential humidifier: $$\begin{array} { l r } 
\text { Variable manufacturing cost } & \$ 240 \
\text { Applied fixed manufacturing cost } & 80 \
\text { Variable selling and administrative cost } & 60 \
\text { Allocated fixed selling and administrative cost } & ?
\end{array}$$ 
To achieve a target price of $450 per humidifier, the markup percentage on total unit cost is 12%.
Required: 
A. Calculate the fixed selling and administrative cost allocated to each humidifier.
B. For each of the following bases, determine the appropriate percentage markup on cost that will result in a target price of $450 per humidifier: (1) variable manufacturing cost, (2) absorption manufacturing cost, and (3) total variable cost. (Round percentages to the nearest one-hundredth of a percent.)

Quizplus · Accepted Answer

The Answer of The following data pertain to Waters Corporation's residential humidifier: $$\begin{array} { l r } 
\text { Variable manufacturing cost } & \$ 240 \
\text { Applied fixed manufacturing cost } & 80 \
\text { Variable selling and administrative cost } & 60 \
\text { Allocated fixed selling and administrative cost } & ?
\end{array}$$ 
To achieve a target price of $450 per humidifier, the markup percentage on total unit cost is 12%.
Required: 
A. Calculate the fixed selling and administrative cost allocated to each humidifier.
B. For each of the following bases, determine the appropriate percentage markup on cost that will result in a target price of $450 per humidifier: (1) variable manufacturing cost, (2) absorption manufacturing cost, and (3) total variable cost. (Round percentages to the nearest one-hundredth of a percent.)

The Following Data Pertain to Waters Corporation's Residential Humidifier To Achieve a Target Price of $450 Per Humidifier, the