The Following Costs Relate to Southern Company: Variable Manufacturing Cost

question 29

Multiple Choice

The following costs relate to Southern Company: Variable manufacturing cost, $30; variable selling and administrative cost, $8; applied fixed manufacturing overhead, $15; and allocated fixed selling and administrative cost, $4. If Southern uses total-cost pricing formulas, the company's markup percentage would be computed on the basis of:

• A) $30.
• B) $38.
• C) $45.
• D) $57.
• E) none of the other answers are correct.