Reference no: EM133152323

Question - Huds Incorporated 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 $100 per unit

Direct labor $30 per unit

Variable overhead $8 per unit

Fixed overhead $600,000 per year

Variable selling and administrative expenses $3 per unit

Fixed selling and administrative expenses $120,000 per year

Units produced 50,000 units per year

Units sold 50,000 units per year

Required - Compute the target selling price per unit under absorption costing.