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kakasveta [241]
1 year ago
15

a manufacturer reports the following costs to produce 11,000 units in its first year of operations: direct materials, $11 per un

it, direct labor, $7 per unit, variable overhead, $55,000, and fixed overhead, $143,000. the total product cost per unit under absorption costing is:
Business
1 answer:
DENIUS [597]1 year ago
5 0

The total product cost per unit under absorption costing is: $75.

In absorption costing, the cost of every unit produced is worked out by adding up the direct cost of materials, direct labor, variable overhead, and the fixed overhead. Unlike in the case of marginal costing where the fixed cost is treated as period cost, in absorption costing, fixed cost is treated as a product cost.

The cost per unit

                                         $

Direct material                  28

Direct labor                       24

Variable overhead            10

Fixed cost                          13

Cost per unit                     75

Cost of Inventory

Number of units   = 1000

Cost per unit    = $75

Value = 1000 * $75 = $75,000

Learn more about absorption costing here:brainly.com/question/26276034

#SPJ4

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