For the following annual data of the electrical company producing 25,000 electrical bulbs, calculate the selling price of each electrical bulb. No. of workers= 10 Working wage= $10,000 Material cost = $200,000 Water, generator and electricity invoices = 17% of the prime cost. Distribution cost = 15% of the direct cost. Administration cost= 10% of the direct cost. Advertising cost= 20% of the administration cost. Profit = 8% of the total cost.

For the following annual data of the electrical company producing 25,000 electrical bulbs, calculate the selling price of each electrical bulb. No. of workers= 10 Working wage= $10,000 Material cost = $200,000 Water, generator and electricity invoices = 17% of the prime cost. Distribution cost = 15% of the direct cost. Administration cost= 10% of the direct cost. Advertising cost= 20% of the administration cost. Profit = 8% of the total cost.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 1CE: The expected costs for the Maintenance Department of Stazler, Inc., for the coming year include:...

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