Yelk Garage uses time and materials pricing. It is setting prices for next year using the following information: Labor rate, including fringe benefits $ 68 per hour Annual labor hours 3.100 hours Annual materials purchases $ 834,000 Materials purchasing, handling, and storage $ 50, 040 Overhead for depreciation, taxes, insurance, etc. $ 68, 200 Target profit margin for both labor and materials 20 % What should Yelk set as the materials markup per dollar of materials used? Multiple Choice 26 %. 6%. 20% 38% . 32%.

Yelk Garage uses time and materials pricing. It is setting prices for next year using the following information: Labor rate, including fringe benefits $ 68 per hour Annual labor hours 3.100 hours Annual materials purchases $ 834,000 Materials purchasing, handling, and storage $ 50, 040 Overhead for depreciation, taxes, insurance, etc. $ 68, 200 Target profit margin for both labor and materials 20 % What should Yelk set as the materials markup per dollar of materials used? Multiple Choice 26 %. 6%. 20% 38% . 32%.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter3: Cost Behavior And Cost Forecasting

Section: Chapter Questions

Problem 19BEA: Using High-Low to Calculate Predicted Total Variable Cost and Total Cost for a Time Period That...

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