9:14 Diedrich Corporation makes a product with the following costs: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses Multiple Cholce $ 1,252,900 $ 1,581,200 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 67,000 units per year. The company has invested $420,000 in this product and expects a return on Investment of 12%. Direct labor is a variable cost in this company. The markup on absorption cost is closest to: O O 12.0% 51.0% 49.6% Per Unit $20.80 $ 15.20 $ 1.30 126.7% Per Year $ 4.20

Dedinch Corporason makes a product wh the following costs The company uses the absorpeon costing approach to cost-olus pnche described in the text The pencing calcusatons are bested on budgeted prosucton and sales of 67000 unts per yeac. The compary has invested $420000 in tis product and expecss a fotam on invettmect of 125 . Deroct labot is a valable cost in this company. The markup an absorpoon cost s dosest ta intple coace 1200 stos asex