Exercise 6-16 (Static) Target pricing LO P3

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	$ 100	per unit
Direct labor	$ 30	per unit
Variable overhead	$ 8	per unit
Fixed overhead	$ 600,000	per year
Variable selling and administrative expenses	$ 3	per unit
Fixed selling and administrative expenses	$ 120,000	per year
Units produced	50,000	units per year
Units sold	50,000	units per year

Compute the target selling price per unit under absorption costing.

Exercise 6-16 (Static) Target pricing LO P3 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 $ 108 per unit Direct labor $ 30 per unit Variable overhead $ 8 per unit Fixed overhead $ 600, 200 per year Variable selling and administrative expenses $ 3 per unit Fixed selling and administrative expenses $ 120, 808 per year Units produced 50,coe units per year Units sold 50, 20e units per year Compute the target selling price per unit under absorption costing. Per unit Product cost per unit using absorption costing Target markup per unit Target selling price per unit