Question

Ramort Company reports the following cost data for its single product. The company regularly sells 23,500 units of its product at a price of $67.00 per unit.

Direct materials	$	10.70	per unit
Direct labor	$	12.70	per unit
Overhead costs for the year
Variable overhead	$	3.70	per unit
Fixed overhead per year	$	72,900.00
Selling and administrative costs for the year
Variable	$	2.70	per unit
Fixed	$	65,900
Normal production level (in units)		23,500	units

Compute gross margin under absorption costing. (Round unit cost amounts to 2 decimal places.)

	Production volume
Cost of goods sold:	23,500 units
Cost of goods sold per unit
Number of units sold
Total cost of goods sold
RAMORT COMPANY
Income Statement (partial)
	Sales volume
	23,500 units

A manufacturer reports the following information on its product.

Direct materials cost	$	45.00	per unit
Direct labor cost	$	11.50	per unit
Variable overhead cost	$	5.50	per unit
Fixed overhead cost	$	1.50	per unit
Target markup		40	%

Compute the target selling price per unit under absorption costing.

Answer 1