PALAGANAS, MCKENZIE G.

BSBA- FM 3

Seatwork/Activities
Controllership

A.Consider the following price and cost information:

* Based on planned monthly production of 100 units per month.

Using a markup percentage on total cost of 35%, calculate the selling price.

= 900+(900*35%)

= 1, 215

B.Consider the following:

To the nearest tenth, what is the markup percentage required to earn the target return on
investments using the cost-plus formula based on total costs?
Total Cost = $200,000+$150,000 = $350,000
ROI = $400,000*20% = 80,000
Markup Percentage = 80,000/350,000 = 22.9%

C.Consider the following:

To the nearest tenth, what is the markup percentage required to earn the target return on investment
using the cost-plus formula based on total variable costs?

= ((80,000+150,000)/200,000) *100%

= 115%
D.Consider the following:

What should be the hourly labor cost charged to jobs?

= $18 - $5

= $23

E.Consider the following:

What should be the material handling and storage cost per dollar of material?

= 24,000/240,000

= 0.1

F.Lakeland Corporation is involved in a competitive bidding situation. Lakeland allocates variable and
fixed overhead to jobs based on direct labor dollars. Costs related to the project are estimated as
follows:

Which of the above costs should be used in setting the minimum bid price assuming that Lakeland has
no excess capacity?

= $250,000+$325,000+$125,000+$200,000
= $900,000

G. Lakeland Corporation is involved in a competitive bidding situation. Lakeland allocates variable and
fixed overhead to jobs based on direct labor dollars. Costs related to the project are estimated as
follows:
Which of the above costs should be used in setting the minimum bid price assuming that Lakeland has
excess capacity?

= $250,000+$325,000+$125,000

= $700,000