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Sirhuds Inc., a maker of smartwatches, reports the information below on its product. The company uses...

Question

Sirhuds Inc., a maker of smartwatches, reports the information below on its product. The company uses...

Sirhuds Inc., a maker of smartwatches, reports the information below on its product. The company uses absorption costing and
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 Direct labor cost Variable overhead cost Fixed overhead cost Variable selling and administrative expenses Fixed selling and administrative expenses Expected production and sales) $ 128 per unit 58 per unit 36 per unit $231,000 per year 17 per unit $190.000 per year 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.) Por unit Direct materials Direct labor Variable overhead Foxed overhead Total product cost using absorption costing Target profit Target selling price $ 0.00

Answers

Calculate target selling price

Direct material 128
Direct labor 58
Variable overhead 36
Fixed overhead (231000/22000) 10.5
Total product cost using absorption Costing 232.50
Target profit (232.5*40%) 93
Target selling price 325.50


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