Exercise 06-11 Absorption costing and product pricing LO P4 Sirhuds Inc., a maker of smartwatches reports the information below on its product. The company uses absorption costing and has a target markup of 40% of absorption cost per unit Direct materials cost Direct labor cost Variable overhead cost Fixed overhead cost Variable selling and administrative expenses Fixed selling and administrative expenses Expected production (and sales) $ 112 per unit $ 42 per unit $ 20 per unit $ 247,000 per year $ 9 per unit $ 150,000 per year 38,000 units per year Compute the target selling price per unit under absorption costing. (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Compute the target selling price per unit under absorption costing (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Answer is complete but not entirely correct. Direct materials Direct labor Variable overhead Forced overhead Total product cost using absorption costing Target profit Target selling price Per unit S 112.00 42.00 20.00 1.65$ IS 175.65 70 25 S 245,91