Medusa Company allocates costs from the payroll department (S1) and the maintenance department (S2) to the molding (P1), finishing (P2), and…


Medusa uses the direct method to allocate costs. Round all answers to the nearest dollar. What amount of the payroll department costs will be allocated to the molding department?

2. A company has $7.10 per unit in variable costs and $4.40 per unit in fixed costs at a volume of 50,000 units. If the company marks up total costs by 0.54, what price should be charged if 63,000 units are expected to be sold?

3. A new product is being designed by an engineering team at Golem Security. Several managers and employees from the cost accounting department and the marketing department are also on the team to evaluate the product and determine the cost using a target costing methodology. An analysis of similar products on the market suggests a price of $127.00 per unit. The company requires a profit of 0.24 of selling price. How much is the target cost per unit?