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Solution Library
Calculation Of Cost Of Per Unit Under Absorption Costing
Question
Olds Inc., which produces a single product, has provided the following data for its most recent month of operations:
|
Number of units produced |
8,800 |
|
Variable costs per unit: |
|
|
Direct materials |
$57 |
|
Direct labor |
$41 |
|
Variable manufacturing overhead |
$6 |
|
Variable selling and administrative expenses |
$10 |
|
Fixed costs: |
|
|
Fixed manufacturing overhead |
$299,200 |
|
Fixed selling and administrative expenses |
$651,200 |
There were no beginning or ending inventories. The absorption costing unit product cost was:
a. $98
b. $138
c. $104
d. $222
Summary
The question belongs to Accounting and it discusses about calculation of cost of per unit under absorption costing.
Total Word Count 23
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