Coffs Harbour Company has budgeted sales of $400 000 with the following budgeted costs:
$$\begin{array} { l r }
\text { Direct materials } & \$ 60000 \
\text { Direct manufacturing labour } & 40000 \
\text { Factory overhead } & \
\quad \text { Variable } & 30000 \
\quad \text { Fixed } & 50000 \
\text { Selling and administrative expenses } & \
\quad \text { Variable } & 20000 \
\quad \text { Fixed } & 30000
\end{array}$$
Compute the average mark-up percentage for setting prices as a percentage of:
a.The full cost of the product
b.The variable cost of the product
c.Variable manufacturing costs
d.Total manufacturing costs
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Question

Coffs Harbour Company has budgeted sales of $400 000 with the following budgeted costs:
 $$\begin{array} { l r } 
\text { Direct materials } & \$ 60000 \
\text { Direct manufacturing labour } & 40000 \
\text { Factory overhead } & \
\quad \text { Variable } & 30000 \
\quad \text { Fixed } & 50000 \
\text { Selling and administrative expenses } & \
\quad \text { Variable } & 20000 \
\quad \text { Fixed } & 30000
\end{array}$$ 
Compute the average mark-up percentage for setting prices as a percentage of:
a.The full cost of the product
b.The variable cost of the product
c.Variable manufacturing costs
d.Total manufacturing costs
_____________________________________________________________________________________________
_____________________________________________________________________________________________

Quizplus · Accepted Answer

The Answer of Coffs Harbour Company has budgeted sales of $400 000 with the following budgeted costs:
 $$\begin{array} { l r } 
\text { Direct materials } & \$ 60000 \
\text { Direct manufacturing labour } & 40000 \
\text { Factory overhead } & \
\quad \text { Variable } & 30000 \
\quad \text { Fixed } & 50000 \
\text { Selling and administrative expenses } & \
\quad \text { Variable } & 20000 \
\quad \text { Fixed } & 30000
\end{array}$$ 
Compute the average mark-up percentage for setting prices as a percentage of:
a.The full cost of the product
b.The variable cost of the product
c.Variable manufacturing costs
d.Total manufacturing costs
_____________________________________________________________________________________________
_____________________________________________________________________________________________

Coffs Harbour Company Has Budgeted Sales of $400 000 with the Following