Answered

Find the best answers to your questions with the help of IDNLearn.com's knowledgeable users. Discover detailed answers to your questions with our extensive database of expert knowledge.

Vijay Company reports the following information regarding its production costs. Direct materials $ 10 per unit Direct labor $ 20 per unit Overhead costs for the year Variable overhead $ 10 per unit Fixed overhead $ 160,000 Units produced 20,000 units
Compute its product cost per unit under absorption costing.
Production cost per unit

Sagot :

Ayokenny2001idn

Answer:

$48 per unit

Explanation:

Given the above data, we need to find the value of unitary fixed overhead.

Unitary fixed overhead = $160,000 / 20,000 = $8

Now, we can then calculate unitary cost of production

Unitary cost = Direct material + Direct labor + Total overhead

Unitary cost = $10 + $20 + $10 + $8

Unitary cost = $48 per unit

We value your presence here. Keep sharing knowledge and helping others find the answers they need. This community is the perfect place to learn together. For trustworthy answers, rely on IDNLearn.com. Thanks for visiting, and we look forward to assisting you again.