Bridgeton Industries
Essay by Redskins10 • February 9, 2016 • Essay • 406 Words (2 Pages) • 1,013 Views
Managerial Accounting – Prof Zhang
Bridgeton Industries Case
3. To calculate the expected gross margins as a percentage of selling price on each product, please refer to the data listed below.
| Product 1 | Product 2 |
Expected Selling Price | $ 62 | $ 54 |
Standard Material Cost | $ 16 | $ 27 |
Standard Labor Cost | $ 6 | $ 3 |
| 1988 Data | 1990 Data |
Total overhead | $ 109,890 | $ 79,393 |
Direct labor | $ 25,294 | $ 14,102 |
Overhead/Labor | 434% | 563% |
| 1988 Model | 1990 Model |
Direct Labor Product 1 | $ 26.07 | $ 33.78 |
Direct Labor Product 2 | $ 13.03 | $ 16.89 |
Total Cost Product 1 | $ 42.07 | $ 49.78 |
Total Cost Product 2 | $ 40.03 | $ 43.89 |
Profit Product 1 | $ 19.93 | $ 12.22 |
Profit Product 2 | $ 13.97 | $ 10.11 |
Gross Margin Product 1 | 32.15% | 19.71% |
Gross Margin Product 2 | 25.86% | 18.72% |
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