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Calculate the unit product cost under absorption costing using the following information.

Calculate the unit product cost under absorption costing using the following information.

Direct materials: $50/unit

Direct labor: $75/Unit

Variable manufacturing overhead:$27/Unit

Fixed manufacturing overhead: $30,000

Units produced: 10,000

Units sold: 6,000

Solutions

Expert Solution

 
Unit Product Cost
Direct Material 50*10000 $    5,00,000.00
Direct Labour 75*10000 $    7,50,000.00
Variable Manufacturing Overhead 27*10000 $    2,70,000.00
Fixed Manufacturing Overhead   $       30,000.00
Total Cost   $ 15,50,000.00
Units produced 10000  
Unit Product Cost   $             155.00

Dr. OWL answered 3 years ago
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