Asked by Lisbeth Molina on May 04, 2024
Verified
What is the unit product cost for the month under absorption costing?
A) $32 per unit
B) $61 per unit
C) $37 per unit
D) $66 per unit
Absorption Costing
A bookkeeping approach that encompasses the total expenses of production, including direct materials, direct labor, along with both variable and fixed overhead costs, into the pricing of a product.
- Develop a comprehension of the absorption costing concept and its calculation strategy.
- Compute and detail the per-unit expenditure exploiting both variable and absorption costing formulas.
Verified Answer
MW
miesha whiteMay 04, 2024
Final Answer :
B
Explanation :
Absorption costing includes all manufacturing costs (variable and fixed) in the unit product cost. The total manufacturing cost for the month is $183,600 ($91,800 + $65,700 + $26,100). Dividing this by the total number of units produced (3,000) gives a unit product cost of $61 per unit.
Explanation : 
Learning Objectives
- Develop a comprehension of the absorption costing concept and its calculation strategy.
- Compute and detail the per-unit expenditure exploiting both variable and absorption costing formulas.