Sauna''s mark-up percentage

Assignment Help Accounting Basics

Reference no: EM131030317

1. Sauna Company has average invested capital of $900,000 and a target ROI of 20%. The company determines its markup percentage based on absorption costing. Manufacturing costs per unit are as follows: direct materials $6, direct labour $8, variable overhead $2, fixed overhead $2. Unit sales are expected to be 40,000 next year. Total selling and administrative costs are expected to be $360,000. Sauna's mark-up percentage should be?

2. Garrison Ltd. had the following variances related to overhead in 2005: variable overhead spending, $5,000 unfavorable; variable overhead efficiency $3,000 favorable; fixed overhead budget $1,000 favorable; fixed overhead volume $10,000 unfavorable. By how much was overhead in total, under or over applied for 2005?

Reference no: EM131030317

Questions Cloud

Capital asset pricing model : According to the Capital Asset Pricing Model (CAPM), fairly priced securities a. have positive betas. b. have zero alphas.

The value of the stock : Assume that at the end of the next year, Company A will pay a $2.00 dividend per share, an increase from the current dividend of $1.50 per share. After that, the dividend is expected to increase at a constant rate of 5%.If you require a 12% return on..

What is the root problem that you are considering : What steps should be taken by an organization that is committed to shattering the glass ceiling? When generalizing beyond “the glass ceiling”, what is the root problem that you’re considering? How do you eliminate that problem? How do you prevent the..

What types of education-training and experiences : What types of education, training, and experiences do you think would best prepare someone to be an effective project manager? (Make sure to put some thought into this question, and explain why you think the things you suggest would be good preparati..

Sauna''s mark-up percentage : Sauna Company has average invested capital of $900,000 and a target ROI of 20%. The company determines its markup percentage based on absorption costing. Manufacturing costs per unit are as follows: direct materials $6, direct labour $8, variable ove..

Write a research paper about joann of arc : Write a Research Paper about Joann of Arc. The paper should be 9-10 pages. Doubled Spaced-12 Times Roman with 1.25 " margin. 7 academic Resources (books or journals) references.

Personal integrity in the theories of ethical leadership : What is the most important indicator of personal integrity in the theories of ethical leadership?

Data concerning its manufacturing costs : Juniper Company has provided the following data concerning its manufacturing costs and work in process inventories last month: Raw materials used in production ................ $270,000 Direct labour ............................................... ..

Each plaintiff seeks specific performance : General Equity Corporation enters into a contract with Honi, who agrees to create artwork for General’s main office building. Honi delays and eventually refuses to perform. In separate suits by General against Honi and by Ideal against General, each ..

User Account

All Pages