Answer:
The total product cost per unit under absorption costing is $15.38 per unit
Explanation:
Absorption costing : Under absorption costing, all costs which is assigned in the production is recorded in this costing method. It includes direct labor cost, direct material cost, variable overhead cost, fixed overhead cost, etc.
The computation of total product cost per unit is shown below:
= Direct material per unit + direct labor per unit + variable overhead per unit + fixed overhead per unit
where,
Direct material and direct labor per unit is given but variable overhead per unit and fixed overhead per unit is not given so first we have to calculate these two cost per unit. The calculation is shown below:
Variable overhead per unit = Total variable overhead cost ÷ expected units to be produced
= $41,400 ÷ 18,000
= $2.3 per unit
Now for Fixed overhead per unit = Total fixed overhead cost ÷ expected units to be produced
= $150,000 ÷ 18,000
=$8.33 per unit
So, total product cost per unit = Direct material per unit + direct labor per unit + variable overhead per unit + fixed overhead per unit
= $1.25 + $3.5 + $2.3 + $8.33
= $15.38 per unit
Hence, the total product cost per unit under absorption costing is $15.38 per unit
D)
Market equilibrium occurs when supply = demand
<span>If the ending balance is $59,000, and this is increased by $11,000 over last year, then the beginning balance is $59,000 - $11,000 = $48,000. Add to the beginning amount the supplies purchased: $48,000 + $260,000 = $308,000. Again, since the ending balance is $59,000, we subtract this to get the difference, which will equal the expenses for the year: $308,000 - $59,000 = $249,000.</span>
