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Aleksandr [31]
3 years ago
8

Under absorption costing, a company had the following unit costs when 8,000 units were produced. Direct labor $ 8.50 per unit Di

rect material $ 9.00 per unit Variable overhead $ 6.75 per unit Fixed overhead ($60,000/8,000 units) $ 7.50 per unit Total production cost $ 31.75 per unit Compute the total production cost per unit under variable costing if 25,000 units had been produced.
Business
1 answer:
Dimas [21]3 years ago
8 0

Answer:

$24,25

Explanation:

Cost per unit (Variable Costing) = Variable manufacturing costs

                                     = Direct Materials + Direct Labor + Variable Overheads

                                     =  $ 9.00+$ 8.50+$ 6.75

                                     = $24,25

Therefore, the total production cost per unit under variable costing if 25,000 units had been produced is $24,25

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