Exercise 6-16 (Algo) Target pricing LO P3

Huds Incorporated 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	$ 104	per unit
Direct labor	$ 34	per unit
Variable overhead	$ 12	per unit
Fixed overhead	$ 207,000	per year
Variable selling and administrative expenses	$ 5	per unit
Fixed selling and administrative expenses	$ 130,000	per year
Units produced	46,000	units per year
Units sold	46,000	units per year

Compute the target selling price per unit under absorption costing.

Note: Do not round intermediate calculations. Round your final answers to 2 decimal places.

Huds Incorporated reports the information below on its product. The company uses absorption costing and has a target markup of 40% of absorption cost per unit. Compute the target selling price per unit under absorption costing. Note: Do not round intermediate calculations. Round your final answers to 2 decimal places