Answer:
Production cost per unit $80.59
Explanation:
The computation of the production cost per unit using absorption costing is shown below:
Direct labor per unit $28
Direct material per unit $29
Variable overhead per unit $20 ($760,000 ÷ 38,000 units)
Fixed overhead per unit $3.59 ($136,420 ÷ 38,000 units)
Production cost per unit $80.59
We simply added all the cost per unit so that the production cost per unit could come
