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Ramort Company reports the following cost data for its single product. The company regularly sells 23,500 units of its product at a price of $67.00
Ramort Company reports the following cost data for its single product. The company regularly sells 23,500 units of its product at a price of $67.00 per unit.
Direct materials | $ | 10.70 | per unit |
Direct labor | $ | 12.70 | per unit |
Overhead costs for the year | |||
Variable overhead | $ | 3.70 | per unit |
Fixed overhead per year | $ | 72,900.00 | |
Selling and administrative costs for the year | |||
Variable | $ | 2.70 | per unit |
Fixed | $ | 65,900 | |
Normal production level (in units) | 23,500 | units | |
Compute gross margin under absorption costing. (Round unit cost amounts to 2 decimal places.)
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A manufacturer reports the following information on its product.
Direct materials cost | $ | 45.00 | per unit |
Direct labor cost | $ | 11.50 | per unit |
Variable overhead cost | $ | 5.50 | per unit |
Fixed overhead cost | $ | 1.50 | per unit |
Target markup | 40 | % |
Compute the target selling price per unit under absorption costing.
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