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Loudon Company has the following unit costs: direct materials $6, direct labor $3, variable overhead $2, fixed overhead $1. Under absorption costing, total unit cost is:

Sagot :

Parrainidn

Based on the various costs incurred by Loudon Company, the total unit cost under absorption costing is $12.

What is the total cost?

Under absorption costing, the fixed costs are ascribed to the units produced as well as the variable costs.

The total unit cost here is therefore:

= Direct materials + Direct labor + Variable overhead + Fixed overhead

= 6 + 3 + 2 + 1

= $12

Find out more on absorption costing at https://brainly.com/question/6337340.

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