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 Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses Units produced Units sold $ 122 per unit $ 52 per unit $ 30 per unit $ 252,000 per year $ 14 per unit $ 175,000 per year Per unit 28,000 units per year 28,000 units per year Compute the target selling price per unit under absorption costing. (Do not round Intermediate calculations. Round your final answers to 2 decimal places.)
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 Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses Units produced Units sold $ 122 per unit $ 52 per unit $ 30 per unit $ 252,000 per year $ 14 per unit $ 175,000 per year Per unit 28,000 units per year 28,000 units per year Compute the target selling price per unit under absorption costing. (Do not round Intermediate calculations. Round your final answers to 2 decimal places.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Exercise 19-16 (Algo) Target pricing LO P3
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
Direct labor
Variable overhead
Fixed overhead
Variable selling and administrative expenses
Fixed selling and administrative expenses
Units produced
Units sold
Product cost per unit using absorption costing
Target markup per unit
Target selling price per unit
$ 122 per unit
$ 52 per unit
$ 30 per unit
$ 252,000 per year
$ 14 per unit
$ 175,000 per year
Compute the target selling price per unit under absorption costing. (Do not round Intermediate calculations. Round your final
answers to 2 decimal places.)
Per unit
28,000 units per year.
28,000 units per year
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