The Big Tool Company Has Budgeted Sales of $300,000 with the Following

Essay

The Big Tool Company has budgeted sales of $300,000 with the following budgeted costs:
$\begin{array}{lc}\text { Direct materials } & \$ 60,000 \\\text { Direct manufacturing labor } & 35,000 \\\text { Factory overhead } & \\\quad \text { Variable } & 30,000 \\\quad \text { Fixed } & 45,000 \\\text { Selling and administrative expenses } & \\\quad \text { Variable } & 20,000 \\\quad \text { Fixed } & 25,000\end{array}$
Compute the average markup percentage for setting prices as a percentage of:
a.The full cost of the product
b.The variable cost of the product
c.Variable manufacturing costs
d.Total manufacturing costs