(SOLVED) Sirhuds Inc a maker of smart watches reports the information


Question Description:

$19

Sirhuds Inc., a maker of smart watches, reports the information below on its product. The company uses absorption costing and has a target markup of 40% of absorption cost per unit. Compute the target selling price per unit under absorption costing.
Direct materials cost…………………………………..$ 100 per unit
Direct labor cost…………………………………………$30 per unit
Variable overhead cost…………………………………..$8 per unit
Fixed overhead cost………………………………$600,000 per year
Variable selling and administrative expenses……………$3 per unit
Fixed selling and administrative expenses………$ 120,000 per year
Expected production (and sales)……………..50,000 units per year

Answer

$19