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

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

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