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Sea Company reports the following information regarding its production costs: Units produced 42,000 units Direct labor $35 per unit Direct materials $28 per unit Variable overhead $17 per unit Fixed overhead $105,000 in total Compute the product cost per unit under absorption costing.

Respuesta :

Answer:

$82.5 per unit

Explanation:

Given that,

Units produced = 42,000 units

Direct labor = $35 per unit

Direct materials = $28 per unit

Variable overhead = $17 per unit

Total Fixed overhead = $105,000

Product cost per unit under absorption costing:

= Direct labor + Direct materials + variable overhead per unit + (Total fixed overhead ÷ Units produced)

= $35 + $28 + $17 + ($105,000 ÷ 42,000)

= $35 + $28 + $17 + $2.5

= $82.5 per unit

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