Formulas for Chapter Twelve: Product (Manufacturing) Cost Co…
Formulas for Chapter Twelve: Product (Manufacturing) Cost Concept to determine selling price: Total Manufacturing Costs = Total Direct Materials Cost + Total Direct Labor Cost + Total Variable Factory Overhead Cost + Total Fixed Factory Overhead Cost Total Manufacturing Cost per Unit = Total Manufacturing Costs ÷ Estimated Units Produced and Sold Desired Profit = Desired Rate of Return x Total Assets Markup Percentage = (Desired Profit + Total Variable Selling & Administrative Expenses + Total Fixed Selling & Administrative Expense) ÷ Total Manufacturing Costs Total Manufacturing Cost per Unit + (Markup Percentage x Total Manufacturing Cost per Unit) = Selling Price per Unit Variable Cost Concept to determine selling price: Total Variable Costs = Total Direct Materials Cost + Total Direct Labor Cost + Total Variable Factory Overhead Cost + Total Variable Selling & Administrative Expense Total Variable Cost per Unit = Total Variable Costs ÷ Estimated Units Produced and Sold Desired Profit = Desired Rate of Return x Total Assets Markup Percentage = (Desired Profit + Total Fixed Factory Overhead + Total Fixed Selling & Administrative Expense) ÷ Total Variable Costs Total Variable Cost per Unit + (Markup Percentage x Total Variable Cost per Unit) = Selling Price per Unit Total Cost Concept to determine selling price: Total Cost per Unit = Total Costs ÷ Estimated Units Produced and Sold Desired Profit = Desired Rate of Return x Total Assets Markup Percentage = Desired Profit ÷ Total Cost Total Cost per Unit + (Markup Percentage x Total Cost per Unit) = Selling Price per Unit