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
$ 132 per unit
$ 62 per unit
$ 40 per unit
$ 207,000 per year
$ 19 per unit
$ 200,000 per year
18,000 units per year
18,000 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.)
Product cost per unit using absorption costing
Target markup per unit
Target selling price per unit
Per unit