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$128per unitDirect labor cost$58per unitVariable overhead cost$36per unitFixed overhead cost$231,000per yearVariable selling and administrative expenses$17per unitFixed selling and administrative expenses$190,000per yearExpected production (and sales) 22,000units per year Compute the target selling price per unit under absorption costing. (Do not round intermediate calculations. Round your final answer to 2 decimal places.) HENNA CO.Forecasted Contribution Margin Income StatementProduct TProduct OTotalUnits$ Per unitTotalS Per unitTotalSalesVariable costContribution marginFixed costsIncome (Loss) before taxesincome taxes (tax benefit)Net income (loss)

Answered: Image /qna-images/answer/c9ddecb3-4ae0-46ff-83e7-cdc2b980cb78.jpg

Answered: Direct materials cost $ 128 per unit…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Concept explainers

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	$	128	per unit
Direct labor cost	$	58	per unit
Variable overhead cost	$	36	per unit
Fixed overhead cost	$	231,000	per year
Variable selling and administrative expenses	$	17	per unit
Fixed selling and administrative expenses	$	190,000	per year
Expected production (and sales)		22,000	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.)

HENNA CO.
Forecasted Contribution Margin Income Statement
Product T
Product O
Total
Units
$ Per unit
Total
S Per unit
Total
Sales
Variable cost
Contribution margin
Fixed costs
Income (Loss) before taxes
income taxes (tax benefit)
Net income (loss)

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions