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Sirhuds Inc., a maker of smart watches, reports the information below on its product. The company uses absorption costing and has a target markup of
Sirhuds Inc., a maker of smart watches, 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 | $ | 136 | per unit |
Direct labor cost | $ | 66 | per unit |
Variable overhead cost | $ | 44 | per unit |
Fixed overhead cost | $ | 175,000 | per year |
Variable selling and administrative expenses | $ | 21 | per unit |
Fixed selling and administrative expenses | $ | 210,000 | per year |
Expected production (and sales) | 14,000 | 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.) |
Direct Materials: Direct Labor: Variable Overhead: Fixed Overhead: Total Production Costs using absorption costing: Target Profit: Target Selling Price:
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