mework Hel Exercise 19-11 Absorption costing and product pricing LO P4 Sirhuds I

Question

mework Hel Exercise 19-11 Absorption costing and product pricing LO P4 Sirhuds Inc., a maker of smartwatches, reports the information below on its product. The companry uses absorption costing and has a target markup of 40% of absorption cost per unit. $ 102 per unit $32 per unit birect labor cost riable everhead cost 10 per u Variable selling and adainistrative expenses rixed selling and administrative expenses Expected production (and sales ) $192,000 per year 4 per wnit $125,000 per year 48,000 nits 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.) Direct malterials Direct labor Variable overhead Fxed overhead Total product cost using absorption costing Target profit Tanget selling price 0.00 ?Prev 7of7 MacBook Air

Explanation / Answer

Direct Material      102.00 Direct Labor Cost         32.00 Variable Overhead         10.00 Fixed Overhead - $192,000 / 48,000 Units           4.00 Total Product Cost Using Absorption Costing      148.00 Target Profit - $148 X 40%         59.20 Target Selling Price per Unit      207.20

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