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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.

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.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Ashvinbhai 

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 $ 100 per unit $ 30 per unit $ 8 per unit $ 3 per unit $600,000 per year $120,000 per year 50,000 units per year Direct labor cost Variable overhead cost Fixed overhead cost Variable selling and administrative expenses Fixed selling and administrative expenses Expected production (and sales) Compute the target selling price per unit under absorption costing. Direct materials Direct labor Variable overhead Fixed overhead Total product cost using absorption costing Target profit Target selling price Per unit
Transcribed Image Text: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 $ 100 per unit $ 30 per unit $ 8 per unit $ 3 per unit $600,000 per year $120,000 per year 50,000 units per year Direct labor cost Variable overhead cost Fixed overhead cost Variable selling and administrative expenses Fixed selling and administrative expenses Expected production (and sales) Compute the target selling price per unit under absorption costing. Direct materials Direct labor Variable overhead Fixed overhead Total product cost using absorption costing Target profit Target selling price Per unit
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