Dieckman Company Makes a Product with the Following Costs

question 64

Multiple Choice

Dieckman Company makes a product with the following costs: The company uses the absorption costing approach to cost-plus pricing described in the text. The pricing calculations are based on budgeted production and sales of 71,000 units per year.
The company has invested $360,000 in this product and expects a return on investment of 13%.
Direct labor is a variable cost in this company.

-The selling price based on the absorption costing approach is closest to:

• A)$70.88
• B)$41.60
• C)$56.40
• D)$57.06

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Definitions:

Endocrine

Pertaining to the system of glands that release hormones directly into the bloodstream, influencing various bodily functions.

Development

The process of growth and change that organisms undergo over their lifetimes, encompassing physical, cognitive, and social aspects.

Metabolism

The biochemical processes that occur within a living organism to maintain life, involving the production and use of energy.

Organization

The arrangement of elements and resources in a structured and coordinated manner to achieve desired objectives.