Question

Do It! Review 8-2 

Gundy Corporation produces area rugs. The following per unit cost information is available: direct materials $17, direct labor $6, variable manufacturing overhead $8, fixed manufacturing overhead $6, variable selling and administrative expenses $2, and fixed selling and administrative expenses $9. Using a 35% markup on total per unit cost, compute the target selling price. (Round answer to 2 decimal places, e.g. 10.50.) 

Target selling price = $_______ 

Answer 1

Particular	Amount($)
Direct material	17
direct labor	6
variable manufacturing overhead	8
fixed manufacturing overhead	6
variable selling and administrative expenses	2
fixed selling and administrative expenses	9
total cost	48
Add : Profit(35%on cost)	16.8
Target selling price per unit	64.8