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Beamish Inc., which produces a single product, has provided the following data for its most recent month of operations: Number of units produced 3,700 Variable costs per unit: Direct materials $ 132 Direct labor $ 93 Variable manufacturing overhead $ 5 Variable selling and administrative expense $ 12 Fixed costs: Fixed manufacturing overhead $148,000 Fixed selling and administrative expense $288,600 There were no beginning or ending inventories. The absorption costing unit product cost was:

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Answer:

Absorption costing unit product cost = $270  per unit

Explanation:

Absorption costing values unit produced using the full cost per unit.

It categories cost as production and non-production cost

Full cost per unit =Direct labour cost + direct material cost + Variable production overhead + fixed production overhead

Fixed prod overhead per unit = Total fixed production overhead/Number of units

= $148,000/3,700 units=$40 per unit

Full cost per unit = 132+ 93+ 5 + 40 = $270  per unit

Absorption costing unit = $270  per unit

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