Based on the direct materials, the direct labor, the variable overhead, and the fixed overhead, the total product cost under absorption costing, per unit is $28.
<h3>How to find the total product cost?</h3>
When using the absorption costing method, the total product cost per unit can be found by adding up the materials, labor, and other direct costs involved with the production of the good or service, to the overhead costs involved in production as well.
In this case therefore, the total product cost under absorption costing will be:
= Direct materials + Direct labor + Variable overhead per unit + Fixed manufacturing overhead
Fixed manufacturing overhead:
= Fixed overhead / Number of units
= 6,000 / 1,000
= $6 per unit
The total product cost is therefore:
= Direct materials + Direct labor + Variable overhead per unit + Fixed manufacturing overhead
= 6 + 10 + 6 + 6
= $28
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