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Diedrich Corporation makes a product with the following costs: Per Unit Per Year Direct materials...

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Accounting

Diedrich Corporation makes a product with the following costs:
Per Unit Per Year
Direct materials
$17.70
Direct labor
$11.00
Variable manufacturing overhead
$3.50
Fixed manufacturing overhead
$682,500
Variable selling and administrative expenses $1.00
Fixed selling and administrative expenses
$750,000
The company uses the absorption costing approach to cost-plus pricing described in the text. The pricing calculations are based on budgeted production and sales of 65,000 units per year.
The company has invested $350,000 in this product and expects a return on investment of 15%.
Direct labor is a variable cost in this company. Direct labor is a variable cost in this company. The markup on absorption cost is closest to: round to 2 decimal places.
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