Sirhuds Inc., a maker of smartwatches, reports the information below on its product. The company...
60.1K
Verified Solution
Link Copied!
Question
Accounting
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
$
106
per unit
Direct labor cost
$
36
per unit
Variable overhead cost
$
14
per unit
Fixed overhead cost
$
220,000
per year
Variable selling and administrative expenses
$
6
per unit
Fixed selling and administrative expenses
$
135,000
per year
Expected production (and sales)
44,000
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
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
