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 $ 128 per unit Direct labor $ 58 per unit Variable overhead $ 36 per unit Fixed overhead $ 231,000 per year Variable selling and administrative expenses $ 17 per unit Fixed selling and administrative expenses $ 190,000 per year Units produced 22,000 units per year Units sold 22,000 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 $ 128 per unit Direct labor $ 58 per unit Variable overhead $ 36 per unit Fixed overhead $ 231,000 per year Variable selling and administrative expenses $ 17 per unit Fixed selling and administrative expenses $ 190,000 per year Units produced 22,000 units per year Units sold 22,000 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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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 | $ 128 | per unit |
|---|---|---|
| Direct labor | $ 58 | per unit |
| Variable |
$ 36 | per unit |
| Fixed overhead | $ 231,000 | per year |
| Variable selling and administrative expenses | $ 17 | per unit |
| Fixed selling and administrative expenses | $ 190,000 | per year |
| Units produced | 22,000 | units per year |
| Units sold | 22,000 | 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.)
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