Get insightful responses to your questions quickly and easily on IDNLearn.com. Find the answers you need quickly and accurately with help from our knowledgeable and experienced experts.

Calculate the unit product cost under absorption costing using the following information.
Direct materials: $50/unit
Direct labor: $75/Unit
Variable manufacturing overhead:$27/Unit
Fixed manufacturing overhead: $30,000
Units produced: 10,000
Units sold: 6,000


Sagot :

Answer:

See below

Explanation:

With regards to the above, the unit product cost is calculated as;

= Fixed manufacturing overhead / units produced

Given that;

Fixed manufacturing overhead = $30,000

Unit produced = 10,000

Then,

Units product cost under absorption costing ;

= $30,000 / 10,000

= $3 unit product cost under absorption costing