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jerico jerico
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9 years ago
Grounded Coffee Products manufactures coffee tables. Grounded Coffee Products has a policy of adding a 20% markup to full costs and currently has excess capacity. The following information pertains to the company's normal operations per month:

   Output units   20,000   tables
   Machine-hours   8,000   hours
   Direct manufacturing labor-hours   10,000   hours
   Direct materials per unit   $105    
   Direct manufacturing labor per hour   $10    
   Variable manufacturing overhead costs   $322,500    
   Fixed manufacturing overhead costs   $1,200,000    
   Product and process design costs   $1,100,000    
   Marketing and distribution costs   $1,125,000

For long-run pricing of the coffee tables, what price will most likely be used by Grounded Coffee?
A) $134.76
B) $161.70
C) $222.25
D) $266.70
Textbook 
Cost Accounting

Cost Accounting


Edition: 14th
Authors:
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cyborgcyborg
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9 years ago
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jerico Author
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#2
9 years ago
Thank you for the help. I took this course as an elective, glad it's over in three weeks. Great textbook though!
wrote...
#3
9 years ago
Sweet, you're welcome.
wrote...
#4
3 years ago
Thank you!
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