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AnnyKZ [126]
3 years ago
12

Farron Corporation, which has only one product, has provided the following data concerning its most recent month of operations:

Business
1 answer:
photoshop1234 [79]3 years ago
5 0

Answer:

Unit product cost= $84

Explanation:

Giving the following information:

Units produced 8,700

Direct materials $13

Direct labor $55

Variable manufacturing overhead $1

Fixed manufacturing overhead $130,500

The absorption costing method includes all costs related to production, both fixed and variable. The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead.

Unitary fixed overhead= 130,500/8,700= $15

Unit product cost= 13 + 55 + 1 + 15= $84

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