Question

Bartelt Inc., which produces a single product, has provided the following data for its most recent month of operations: Number of units produced 5,900 Variable costs per unit: Direct materials $ 66 Direct labor $ 60 Variable manufacturing overhead $ 7 Variable selling and administrative expenses $ 15 Fixed costs: Fixed manufacturing overhead $ 200,600 Fixed selling and administrative expenses $ 454,300 There were no beginning or ending inventories. The absorption costing unit product cost was

Answer 1

Answer:

The cost per unit under absorption costing is $167

Explanation:

Under absorption costing approach, the direct material, direct labor, Variable manufacturing overhead and fixed manufacturing overhead are considered as product cost. All other cost are considered as period cost

Thus, the cost per unit under the absorption costing is

Particulars                                           Amount

Direct material                                     $66

Direct labor                                          $60

Variable manufacturing overhead      $7

Fixed manufacturing overhead         $34

$ 200,600 / 5,900

Cost per units                                   $167

Thus, the cost per unit under absorption costing is $167