Managerial Accounting, 3rd Edition, by Weygandt, Kieso, and Kimmel
Solving Managerial Accounting Problems Using Microsoft Excel for Windows by Rex A Schildhouse
Problem P8-1A, Lafluer Corporation needs to set a target price for its newly designed product M14-M16 The following data relate to this new
Per Unit Total
Direct materials $20
Direct labor $42
Variable manufacturing overhead $10
Fixed manufacturing overhead $1,440,000
Variable selling and admin expense $5
Fixed selling and admin expense $1,040,000
These costs are based on a budgeted volume of 80,000 units produced and sold each year Lafluer uses cost-plus pricing
methods to set its target selling price The markup on total unit cost is 30%
(a)(1) Compute the total variable cost per unit for M14-M16
Direct materials Amount
(a)(2) Compute the total fixed cost per unit for M14-M16
Total Budgeted Cost
Costs ÷ Volume = Per Unit
Title Amount Value Formula
Title Amount Value Formula
Title Formula Value Formula
(a)(3) Compute the total cost per unit for M14-M16
(b) Compute the desired ROI per unit for M14-M16
(c) Compute the target selling price for M14-M16
(d) Compute variable cost per unit, fixed cost per unit, and total cost per unit assuming that 60,000 M14-M16s are sold
during the year (Round to 2 decimal places)
FileName: 7b6c2333-426c-4ab7-a4b5-5c38616a4f09.xls, Tab: Problem P8-1A, Page 1 of 2, 7/11/2011, 6:16 PM
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Type your name into the cell "D5". This will be copied by formula to the rest of the pages as required.
Type the due date of your problem into cell "I5". This will be copied by formula to the rest of the pages as required.
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Type the course identifier into cell "I6". This will be copied by formula to the rest of the pages as required.
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In "DATE" cells enter the date in any of several formats and Excel will format it correctly.
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Place the proper account title in the cell where the word "ACCOUNT" appears on the template.
Place the amount in the cell where the word "AMOUNT" appears on the template. A formula may be placed in
Enter a number like 914 to signify units or gallons where the word "NUMBER" appears.
Write a formula into cells where the word "FORMULA" appears. In these cells, an amount calculated outside of
Place the explanation for the entry in the cell where the word "EXPLANATION" appears on the template.
Insert the account number where "ACCT #" appears on the template during posting.
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