Reference no: EM132316097

Question :

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                                $140 per unit

Direct labor cost                                     $70 per unit

Variable overhead cost                             $48 per unit

Fixed overhead cost                                 $135,000 per year

Variable selling and administrative expenses  $23 per unit

Fixed selling and administrative expenses      $220,000 per year

Expected production (and sales)                 10,000 units per year

Compute the target selling price per unit under absorption costing. (Do not round Intermediate calculations. Pound your final answer to 2 decimal places.)

Direct material   

Direct labor     

Variable overhead

Fixed overhead

Total product cost using absorption costing

Target profit

Target sailing price