Answer:
Total unitary cost= $118.5
Explanation:
Giving the following information:
Units produced 54,000 units
Direct labor $47 per unit
Direct materials $40 per unit
Variable overhead $29 per unit
Fixed overhead $ 135,000
Under absorption costing, the unitary production cost is calculated using the direct material, direct labor, and total unitary overhead (including fixed overhead).
Unitary cost= direct material + direct labor + unitary variable overhead + unitary fixed overhead
Unitary fixed overhead= 135,000/54,000= $2.5 per unit
Total unitary cost= 47 + 40 + 29 + 2.5= $118.5
