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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%
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) A LA LA LA LA LA 124 per unit 54 per unit 32 per unit $ 247,000 per year 15 per unit $ 180,000 per year 26,000 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.) Per unit Direct materials Direct labor Variable overhead Fixed overhead Total product cost using absorption costing Target profit Target selling price
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